Oaktree Specialty Lending (OCSL)
Market Price (9/20/2026): $12.42 | Market Cap: $1.1 BilSector: Financials | Industry: Asset Management & Custody Banks
Oaktree Specialty Lending (OCSL)
Market Price (9/20/2026): $12.42Market Cap: $1.1 BilSector: FinancialsIndustry: Asset Management & Custody Banks
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 16%, Dividend Yield is 12%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 12%, FCF Yield is 9.7% Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 50% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 198%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 198% Low stock price volatilityVol 12M is 23% Megatrend and thematic driversMegatrends include Digital & Alternative Assets. Themes include Private Credit. | Trading close to highsDist 52W High is -3.9% Weak multi-year price returns2Y Excs Rtn is -37%, 3Y Excs Rtn is -82% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 128% Expensive valuation multiplesP/SPrice/Sales ratio is 20x Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -8.0%, Rev Chg QQuarterly Revenue Change % is -5.1% Key risksOCSL key risks include [1] deteriorating portfolio credit quality threatening dividend sustainability and [2] significant portfolio concentration in the software and services sector. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 16%, Dividend Yield is 12%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 12%, FCF Yield is 9.7% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 50% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 198%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 198% |
| Low stock price volatilityVol 12M is 23% |
| Megatrend and thematic driversMegatrends include Digital & Alternative Assets. Themes include Private Credit. |
| Trading close to highsDist 52W High is -3.9% |
| Weak multi-year price returns2Y Excs Rtn is -37%, 3Y Excs Rtn is -82% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 128% |
| Expensive valuation multiplesP/SPrice/Sales ratio is 20x |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -8.0%, Rev Chg QQuarterly Revenue Change % is -5.1% |
| Key risksOCSL key risks include [1] deteriorating portfolio credit quality threatening dividend sustainability and [2] significant portfolio concentration in the software and services sector. |
Qualitative Assessment
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Oaktree Specialty Lending (OCSL) stock has gained about 10% since 5/31/2026 because of the following key factors:
1. Improved Credit Quality and Non-Accrual Reduction.
Oaktree Specialty Lending demonstrated a significant improvement in credit quality during its fiscal Q3 2026, which ended on June 30, 2026. Non-accrual investments decreased to 1.8% of the total debt portfolio at fair value, an 80-basis-point sequential drop from 2.6% in the prior fiscal quarter. This improvement, announced on August 5, 2026, included successfully exiting five non-accrual positions and restoring a significant second-out loan to accrual status, which likely reassured investors about the health of the company's investment portfolio.
2. Stable Net Asset Value (NAV) Per Share.
The company maintained a stable Net Asset Value (NAV) per share of $15.70 as of June 30, 2026. This was nearly unchanged from the $15.69 reported in the previous fiscal quarter, indicating a consistent underlying value of Oaktree Specialty Lending's assets despite prevailing market conditions and a slight sequential decline in adjusted net investment income.
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Oaktree Specialty Lending (OCSL) stock has gained about 10% since 5/31/2026 because of the following key factors:
1. Improved Credit Quality and Non-Accrual Reduction.
Oaktree Specialty Lending demonstrated a significant improvement in credit quality during its fiscal Q3 2026, which ended on June 30, 2026. Non-accrual investments decreased to 1.8% of the total debt portfolio at fair value, an 80-basis-point sequential drop from 2.6% in the prior fiscal quarter. This improvement, announced on August 5, 2026, included successfully exiting five non-accrual positions and restoring a significant second-out loan to accrual status, which likely reassured investors about the health of the company's investment portfolio.
2. Stable Net Asset Value (NAV) Per Share.
The company maintained a stable Net Asset Value (NAV) per share of $15.70 as of June 30, 2026. This was nearly unchanged from the $15.69 reported in the previous fiscal quarter, indicating a consistent underlying value of Oaktree Specialty Lending's assets despite prevailing market conditions and a slight sequential decline in adjusted net investment income.
3. Better-than-Expected Fiscal Q3 2026 Earnings.
Oaktree Specialty Lending reported adjusted Earnings Per Share (EPS) of $0.37 for its fiscal Q3 2026, surpassing the consensus estimate of $0.36. This positive earnings surprise, announced on August 5, 2026, likely acted as a catalyst for the stock's upward movement, signaling strong operational performance relative to market expectations.
4. Favorable Broader BDC Sector Performance.
The stock's gain was supported by a broader positive trend within the Business Development Company (BDC) sector. In early August 2026, BDCs experienced a strong rally, with the sector averaging nearly 10% returns. This performance was catalyzed by better-than-expected Q2 NAV returns across the industry, highlighting the sector's overall resilience and attracting investor interest.
5. Attractive Dividend Distributions.
Oaktree Specialty Lending continued to offer attractive distributions, declaring a combined regular and supplemental dividend of $0.33 per share for fiscal Q3 2026, payable on September 30, 2026. Despite a slight decrease from the prior quarter's dividend, the ongoing commitment to shareholder returns and a high dividend yield likely maintained the stock's appeal, particularly for income-focused investors.
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Stock Movement Drivers
Fundamental Drivers
The 9.6% change in OCSL stock from 5/31/2026 to 9/19/2026 was primarily driven by a 28.8% change in the company's P/E Multiple.| (LTM values as of) | 5312026 | 9192026 | Change |
|---|---|---|---|
| Stock Price ($) | 11.32 | 12.41 | 9.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 55 | 54 | -3.3% |
| Net Income Margin (%) | 89.7% | 78.9% | -12.0% |
| P/E Multiple | 20.1 | 25.9 | 28.8% |
| Shares Outstanding (Mil) | 88 | 88 | 0.0% |
| Cumulative Contribution | 9.6% |
Market Drivers
5/31/2026 to 9/19/2026| Return | Correlation | |
|---|---|---|
| OCSL | 9.6% | |
| Market (SPY) | 0.9% | 28.2% |
| Sector (XLF) | 8.3% | 38.1% |
Fundamental Drivers
The 19.9% change in OCSL stock from 2/28/2026 to 9/19/2026 was primarily driven by a 75.6% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 2282026 | 9192026 | Change |
|---|---|---|---|
| Stock Price ($) | 10.35 | 12.41 | 19.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 30 | 54 | 75.6% |
| Net Income Margin (%) | 105.9% | 78.9% | -25.5% |
| P/E Multiple | 28.2 | 25.9 | -8.3% |
| Shares Outstanding (Mil) | 88 | 88 | 0.0% |
| Cumulative Contribution | 19.9% |
Market Drivers
2/28/2026 to 9/19/2026| Return | Correlation | |
|---|---|---|
| OCSL | 19.9% | |
| Market (SPY) | 11.6% | 31.5% |
| Sector (XLF) | 9.2% | 36.7% |
Fundamental Drivers
The 3.1% change in OCSL stock from 8/31/2025 to 9/19/2026 was primarily driven by a 49.7% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 8312025 | 9192026 | Change |
|---|---|---|---|
| Stock Price ($) | 12.04 | 12.41 | 3.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 36 | 54 | 49.7% |
| Net Income Margin (%) | 129.3% | 78.9% | -39.0% |
| P/E Multiple | 22.9 | 25.9 | 12.9% |
| Shares Outstanding (Mil) | 88 | 88 | 0.0% |
| Cumulative Contribution | 3.1% |
Market Drivers
8/31/2025 to 9/19/2026| Return | Correlation | |
|---|---|---|
| OCSL | 3.1% | |
| Market (SPY) | 19.4% | 32.2% |
| Sector (XLF) | 4.7% | 38.2% |
Fundamental Drivers
The -8.3% change in OCSL stock from 8/31/2023 to 9/19/2026 was primarily driven by a -42.6% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 8312023 | 9192026 | Change |
|---|---|---|---|
| Stock Price ($) | 13.53 | 12.41 | -8.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 93 | 54 | -42.6% |
| Net Income Margin (%) | 90.7% | 78.9% | -13.0% |
| P/E Multiple | 12.3 | 25.9 | 109.9% |
| Shares Outstanding (Mil) | 77 | 88 | -12.5% |
| Cumulative Contribution | -8.3% |
Market Drivers
8/31/2023 to 9/19/2026| Return | Correlation | |
|---|---|---|
| OCSL | -8.3% | |
| Market (SPY) | 75.6% | 41.6% |
| Sector (XLF) | 69.8% | 47.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| OCSL Return | 45% | 4% | 11% | -15% | -6% | 8% | 45% |
| Peers Return | 35% | -11% | 33% | 27% | -5% | -1% | 89% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 103% |
Monthly Win Rates [3] | |||||||
| OCSL Win Rate | 75% | 50% | 58% | 33% | 50% | 44% | |
| Peers Win Rate | 80% | 43% | 72% | 75% | 53% | 49% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 44% | |
Max Drawdowns [4] | |||||||
| OCSL Max Drawdown | -5% | -18% | -14% | -23% | -18% | -15% | |
| Peers Max Drawdown | -9% | -26% | -10% | -10% | -23% | -19% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: ARCC, BXSL, OBDC, FSK, MAIN.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 9/18/2026 (YTD)
How Low Can It Go
| Event | OCSL | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -15.1% | -24.5% |
| % Gain to Breakeven | 17.8% | 32.4% |
| Time to Breakeven | 48 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -55.0% | -33.7% |
| % Gain to Breakeven | 122.3% | 50.9% |
| Time to Breakeven | 140 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -14.7% | -19.2% |
| % Gain to Breakeven | 17.2% | 23.8% |
| Time to Breakeven | 42 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -28.2% | -3.7% |
| % Gain to Breakeven | 39.3% | 3.9% |
| Time to Breakeven | 25 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -26.1% | -12.2% |
| % Gain to Breakeven | 35.4% | 13.9% |
| Time to Breakeven | 166 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -44.4% | -6.8% |
| % Gain to Breakeven | 79.9% | 7.3% |
| Time to Breakeven | 1749 days | 15 days |
In The Past
Oaktree Specialty Lending's stock fell -4.8% during the Summer-Fall 2023 Five Percent Yield Shock. Such a loss loss requires a 5.0% gain to breakeven.
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| Event | OCSL | S&P 500 |
|---|---|---|
| 2020 COVID-19 Crash | ||
| % Loss | -55.0% | -33.7% |
| % Gain to Breakeven | 122.3% | 50.9% |
| Time to Breakeven | 140 days | 140 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -28.2% | -3.7% |
| % Gain to Breakeven | 39.3% | 3.9% |
| Time to Breakeven | 25 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -26.1% | -12.2% |
| % Gain to Breakeven | 35.4% | 13.9% |
| Time to Breakeven | 166 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -44.4% | -6.8% |
| % Gain to Breakeven | 79.9% | 7.3% |
| Time to Breakeven | 1749 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -25.9% | -17.9% |
| % Gain to Breakeven | 34.9% | 21.8% |
| Time to Breakeven | 361 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -52.6% | -53.4% |
| % Gain to Breakeven | 110.8% | 114.4% |
| Time to Breakeven | 259 days | 1085 days |
In The Past
Oaktree Specialty Lending's stock fell -4.8% during the Summer-Fall 2023 Five Percent Yield Shock. Such a loss loss requires a 5.0% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Oaktree Specialty Lending (OCSL)
Oaktree Specialty Lending Corporation (OCSL) is a Business Development Company (BDC) specializing in providing debt and equity financing to middle-market companies. Essentially, OCSL functions as an alternative lender, offering capital solutions to businesses that require flexible financing for various strategic initiatives.
The company's main products and services revolve around a diverse suite of debt financing options, including first and second lien debt, unsecured and mezzanine loans, and bridge financing. OCSL also occasionally makes preferred equity or equity co-investments. It typically invests between $5 million and $75 million per company to support activities such as expansions, sponsor-led acquisitions, and management buyouts. OCSL targets companies with an enterprise value ranging from $20 million to $150 million and EBITDA between $3 million and $50 million.
OCSL primarily serves small and mid-sized companies located in North America. Its investments span a wide range of sectors, including healthcare, manufacturing, business services, retail, consumer goods, food and restaurants, education services, and media and advertising. OCSL aims to be a lead investor in its portfolio companies, playing an active role in their financial development and growth.
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Here are 1-3 brief analogies to describe Oaktree Specialty Lending (OCSL):
- Think of it as a specialized Wells Fargo for growing mid-sized businesses, offering customized loans beyond typical bank offerings.
- It's like a Blackstone or KKR that primarily lends specialized debt to mid-sized companies instead of taking large ownership stakes.
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- First Lien Debt Financing: Senior secured loans that hold the highest priority claim on a company's assets.
- Second Lien Debt Financing: Junior secured loans that are subordinate to first lien debt but senior to unsecured debt.
- Bridge Financing: Short-term loans provided to cover immediate capital needs until longer-term financing can be arranged.
- Mezzanine Debt: Hybrid financing instruments combining characteristics of both debt and equity, typically subordinated.
- Unsecured Loans: Debt facilities not backed by any specific collateral from the borrower.
- Preferred Equity: A class of ownership with a preferential claim on a company's assets and earnings over common stock.
- Equity Co-investments: Minority equity stakes taken alongside debt investments to provide additional upside potential.
- One-Stop Debt Investments: Comprehensive financing packages that combine various debt tranches, such as senior and junior debt, into a single facility.
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Oaktree Specialty Lending (OCSL) is a business development company that provides financing and debt investments to other companies. Therefore, its major customers are the small and mid-sized companies to which it lends or invests. The provided background information does not list the specific names of OCSL's individual customer companies.
Based on the company description, OCSL's customers are characterized by the following attributes:
- Small and mid-sized companies seeking various forms of financing, including one-stop, first lien, second lien debt, bridge financing, unsecured and mezzanine loans, and sometimes preferred equity or equity co-investments for purposes such as expansions, sponsor-led acquisitions, and management buyouts.
- Companies with an enterprise value typically between $20 million and $150 million.
- Companies with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) generally between $3 million and $50 million.
- Companies operating across a range of sectors, including but not limited to:
- Education services
- Business services
- Retail and consumer
- Healthcare
- Manufacturing
- Food and restaurants
- Construction and engineering
- Media and advertising
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Armen Panossian, Chief Executive Officer and Co-Chief Investment Officer
Armen Panossian has served as Chief Executive Officer of Oaktree Specialty Lending Corporation (OCSL) since September 2019 and Co-Chief Investment Officer since November 2024. He previously held the role of Chief Investment Officer from September 2019 to November 2024. Panossian also served as CEO and CIO of Oaktree Strategic Income (OCSI) from 2019 to 2021 and Oaktree Strategic Income II (OSI2) from 2019 to 2023, both of which subsequently merged into OCSL. His extensive background within Oaktree Capital Management, L.P., a global alternative investment manager, includes leadership positions such as Head of Performing Credit and various portfolio manager roles across Global Private Debt and Global Credit. Prior to Oaktree, he worked at Pequot Capital Management, focusing on distressed debt strategy.
Christopher McKown, Chief Financial Officer and Treasurer
Christopher McKown is the Chief Financial Officer and Treasurer of Oaktree Specialty Lending Corporation. He also holds the position of Managing Director at Oaktree, where he is responsible for fund accounting and reporting within Oaktree’s Strategic Credit strategy. Before joining Oaktree in 2011, McKown was a senior manager in the audit practice at KPMG LLP, specializing in clients within the investment management and broker-dealer sectors.
Mathew Pendo, President
Mathew Pendo serves as the President of Oaktree Specialty Lending Corporation and as a Managing Director, Head of Corporate Development and Capital Solutions for Oaktree. He joined Oaktree in 2015. Pendo's previous experience includes serving as the chief investment officer of the Troubled Asset Relief Program (TARP) for the U.S. Department of the Treasury, where he received the Distinguished Service Award in 2013. He spent 18 years at Merrill Lynch, starting in investment banking and rising to managing director of the technology industry group. Subsequently, he was a managing director at Barclays Capital, serving as co-head of U.S. Investment Banking and later co-head of the Global Industrials group. He has also served as a former board member of Ally Financial and SuperValu Inc.
Brett McKeone, Chief Operating Officer
Brett McKeone is the Chief Operating Officer of Oaktree Specialty Lending Corporation and a managing director within Oaktree's Global Private Debt strategy. Before joining Oaktree in 2007, he worked as a senior consultant in the Strategy and Operations practice of Deloitte Consulting LLP. His earlier career included serving as an analyst with Exxon Mobil Corporation.
Raghav Khanna, Co-Chief Investment Officer
Raghav Khanna is a Co-Chief Investment Officer of Oaktree Specialty Lending Corporation and a managing director within Oaktree's Global Private Debt strategy. Prior to his role at Oaktree, Khanna was an investment professional at the Carlyle Group, where he concentrated on buyout opportunities within the financial services sector, indicating experience with private equity-backed ventures. He also served as an analyst at Goldman Sachs.
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The key risks to Oaktree Specialty Lending (OCSL) are primarily associated with the nature of its business as a business development company (BDC) specializing in debt financing for middle-market companies. These risks include:
- Portfolio Company Credit Risk and Non-Accruals: OCSL invests in loans to small and mid-sized companies, which often carry a higher risk of default compared to investment-grade debt. These portfolio companies may be highly leveraged and more susceptible to economic downturns, potentially leading to lower valuations or defaults on their loans. OCSL has faced "severe portfolio performance issues," with concerns about its non-accrual ratio (loans not generating income), which directly impacts its profitability and dividend sustainability.
- Interest Rate Risk: As a BDC, OCSL borrows money to make investments. Its net investment income is significantly influenced by the spread between its borrowing costs and the interest rates it earns on its investments. While a substantial portion of OCSL's loan portfolio (approximately 90% or more) consists of floating-rate loans, which benefit from rising interest rates, a decline in interest rates could reduce interest income. Conversely, increases in borrowing costs due to rising rates can also negatively impact net investment income. Anticipated federal fund rate cuts in 2026 are considered a direct headwind to OCSL's yield.
- Economic Downturns and Market Volatility: OCSL's performance is inherently tied to the broader economic environment. During periods of economic uncertainty or downturns, the middle-market companies in which OCSL invests may experience financial distress, leading to reduced revenue, increased defaults, and lower valuations of OCSL's investments. Market volatility can also result in unrealized depreciation in the value of OCSL's investment portfolio.
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Oaktree Specialty Lending Corporation (OCSL) primarily operates within the private credit and middle market lending sectors in North America.
The estimated size of these addressable markets is as follows:
- The global private credit market is estimated to be between $1.5 trillion and $2.1 trillion. Approximately three-quarters of this market is within the United States.
- The U.S. private credit market was approaching $1.3 trillion as of October 2025, having expanded from $500 billion to this figure over the preceding five years, with expectations for continued growth in 2026.
- Morgan Stanley estimates the U.S. private credit market at $3 trillion at the beginning of 2025, with projections to reach approximately $5 trillion by 2029.
- Direct lending, a significant component of OCSL's services, is the largest sector within private credit, representing about 46% of the asset class.
- The size of direct lending to U.S. middle-market companies was estimated at $1.0 trillion as of March 31, 2022.
- According to an analysis by McKinsey & Company, the total addressable market for private credit in the U.S. could exceed $30 trillion.
- The U.S. middle market, which OCSL targets, comprises approximately 300,000 midsize businesses that generate $13 trillion in annual revenue.
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Drivers of Future Revenue Growth for Oaktree Specialty Lending (OCSL)
Oaktree Specialty Lending (OCSL) is poised for future revenue growth over the next 2-3 years, driven by its strategic capital deployment, focus on portfolio quality, and anticipated market dynamics. The key drivers include:
- Continued Deployment of Capital into New Investments: OCSL consistently deploys its substantial liquidity into new investment commitments, which directly contributes to its total investment income. For instance, in the first fiscal quarter of 2026, the company originated $316.6 million in new investment commitments and funded $314 million, with a weighted average yield on new debt investments of 8.7%. OCSL reported having approximately $576 million in available liquidity as of December 31, 2025, providing ample capacity for future investment activity.
- Reduction and Reinvestment of Non-Accrual Loans: A significant focus for OCSL is the proactive management and reduction of non-accrual loans, which are investments not currently generating interest income. By converting these non-earning assets into income-producing investments, the company enhances its overall interest income. At the end of fiscal year 2025, non-accrual loans represented 2.8% of the portfolio at fair value, a reduction of 100 basis points from the prior year, highlighting successful efforts in this area.
- Leveraging Strategic Joint Ventures: Oaktree Specialty Lending's strategic joint ventures (JVs) are identified as key income-enhancing vehicles. For example, the Kemper JV and Glick JV generated strong annualized returns of 12.4% and 12.5%, respectively, as of the fourth quarter of 2025. Continued optimization and potential expansion of these JVs are expected to contribute positively to the company's revenue.
- Anticipated Increase in Middle-Market Mergers and Acquisitions (M&A) Activity: Management anticipates an uptick in middle-market M&A, which is expected to generate new deal flow and investment opportunities for OCSL. As a business development company specializing in providing financing solutions to middle-market companies, increased M&A activity directly translates into a larger pipeline for new loans and investments, fueling revenue growth.
- Strategic Sector Allocation and Focus on Senior Secured Loans: OCSL's investment strategy prioritizes sectors with resilient business models, such as software and healthcare, and emphasizes first-lien secured loans. This disciplined approach, reflected in the increase of first-lien investments to 82% of the portfolio in fiscal 2024 and 83% in Q4 2025, is designed to limit downside risk and ensure stable investment income. By focusing on higher-quality, income-generating assets, OCSL aims to maintain and grow its revenue base.
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Share Issuance
- In February 2025, Oaktree Capital I, L.P. purchased $100 million of newly issued common stock from OCSL at net asset value, which increased net assets by approximately 7%.
- The company has issued shares under 'at the market' offerings through equity distribution agreements.
- Strategic consolidations, including the 2021 merger with Oaktree Strategic Income Corporation and a 2022 agreement for Oaktree Strategic Income II, Inc., contributed to scaling the company and diversifying its portfolio.
Inbound Investments
- Oaktree Capital I, L.P. made a significant inbound investment of $100 million by purchasing newly issued OCSL common stock in February 2025.
Outbound Investments
- As of September 30, 2025, OCSL's investment portfolio was valued at approximately $2.8 billion at fair value, diversified across 143 portfolio companies.
- The portfolio is predominantly composed of senior secured debt, representing 86% of investments as of September 30, 2025, reflecting a strategic shift towards higher-quality debt in recent years.
- The company utilizes joint ventures, such as Senior Loan Fund JV I, LLC and OCSI Glick JV LLC, to facilitate larger deals and diversify its portfolio, with these JVs holding $513 million in investments and generating a 12.4% aggregate return on equity in Q4 2025.
Capital Expenditures
- Capital expenditures for Oaktree Specialty Lending have consistently been reported as $0.00 for several years, including up to Q1 2026.
Peer Outperformance in Asset Management & Custody Banks
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Reinsurance | 6 | 24.2% | 69.4% | 131.5% | SPNT 168% · RGA 148% · RNR 137% |
| Investment Banking & Brokerage | 13 | -1.7% | 101.3% | 116.9% | IBKR 524% · SNEX 253% · HOOD 194% |
| Diversified Banks | 12 | 27.5% | 126.2% | 116.7% | CM 161% · JPM 159% · RY 148% |
| Life & Health Insurance | 20 | 8.6% | 55.4% | 105.0% | JXN 545% · UNM 364% · FG 207% |
| Multi-Sector Holdings | 4 | 6.8% | 48.5% | 85.7% | JONE 361% · BRK-B 86% · VOYA 85% |
| Regional Banks | 265 | 23.9% | 90.9% | 67.3% | ESQ 387% · GCBC 342% · VBNK 335% |
| Property & Casualty Insurance | 42 | 9.6% | 65.9% | 66.8% | ASIC 2760900% · HRTG 460% · UVE 321% |
| Multi-line Insurance | 9 | 8.8% | 72.1% | 63.7% | GNW 197% · L 110% · SLF 103% |
| Financial Exchanges & Data | 15 | -0.1% | 13.1% | 32.9% | VIRT 183% · CBOE 139% · CME 81% |
| Diversified Financial Services | 4 | -7.3% | 16.8% | 32.0% | FRHC 173% · EQH 118% · TMS -54% |
| Consumer Finance | 30 | 1.7% | 85.7% | 29.3% | ENVA 458% · EZPW 338% · FCFS 169% |
| Insurance Brokers | 16 | -15.1% | -6.9% | 20.9% | LIFE 252% · ARX 87% · AJG 73% |
| Asset Management & Custody Banks ← | 84 | -11.7% | 15.2% | 12.8% | WT 338% · SII 278% · VCTR 273% |
| Commercial & Residential Mortgage Finance | 14 | -50.2% | 26.4% | 12.3% | FNMA 473% · FMCC 441% · ACT 206% |
| Specialized Finance | 3 | 14.0% | 37.3% | -3.4% | EFC 27% · CACC -3% · HASI -15% |
| Mortgage REITs | 33 | -13.0% | 4.7% | -15.7% | NREF 53% · RITM 42% · DX 34% |
| Transaction & Payment Processing Services | 15 | -1.0% | -8.4% | -44.2% | V 74% · MA 71% · CPAY 56% |
| Diversified Capital Markets | 20 | -36.3% | 17.2% | -56.0% | OPY 197% · LPLA 135% · GOLD 94% |
Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 15.90 |
| Mkt Cap | 5.4 |
| Rev LTM | 358 |
| Op Inc LTM | - |
| FCF LTM | 127 |
| FCF 3Y Avg | 113 |
| CFO LTM | 127 |
| CFO 3Y Avg | 113 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | -36.4% |
| Rev Chg 3Y Avg | -5.7% |
| Rev Chg Q | -24.5% |
| QoQ Delta Rev Chg LTM | -8.6% |
| Op Inc Chg LTM | - |
| Op Inc Chg 3Y Avg | - |
| Op Mgn LTM | - |
| Op Mgn 3Y Avg | - |
| QoQ Delta Op Mgn LTM | - |
| CFO/Rev LTM | 43.3% |
| CFO/Rev 3Y Avg | 3.0% |
| FCF/Rev LTM | 43.3% |
| FCF/Rev 3Y Avg | 3.0% |
Price Behavior
| Market Price | $12.41 | |
| Market Cap ($ Bil) | 1.1 | |
| First Trading Date | 06/12/2008 | |
| Distance from 52W High | -3.9% | |
| 50 Days | 200 Days | |
| DMA Price | $12.24 | $11.57 |
| DMA Trend | indeterminate | up |
| Distance from DMA | 1.4% | 7.3% |
| 3M | 1YR | |
| Volatility | 23.1% | 23.5% |
| Downside Capture | 26.35 | 70.81 |
| Upside Capture | 73.67 | 63.85 |
| Correlation (SPY) | 22.8% | 33.0% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.63 | 0.43 | 0.46 | 0.55 | 0.57 | 0.57 |
| Up Beta | 1.60 | -0.05 | -0.05 | 0.10 | 0.43 | 0.52 |
| Down Beta | 0.40 | 1.29 | 0.82 | 0.63 | 0.65 | 0.74 |
| Up Capture | 108% | 69% | 79% | 83% | 47% | 17% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 12 | 20 | 34 | 66 | 122 | 388 |
| Down Capture | -181% | 3% | 21% | 57% | 70% | 81% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 9 | 21 | 29 | 57 | 121 | 344 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with OCSL | |
|---|---|---|---|---|
| OCSL | 4.5% | 23.4% | 0.12 | - |
| Sector ETF (XLF) | 4.5% | 14.6% | 0.08 | 39.3% |
| Equity (SPY) | 16.9% | 12.9% | 0.94 | 33.0% |
| Gold (GLD) | 19.1% | 29.3% | 0.60 | 2.6% |
| Commodities (DBC) | 46.3% | 20.6% | 1.73 | -15.4% |
| Real Estate (VNQ) | 4.9% | 13.6% | 0.10 | 30.4% |
| Bitcoin (BTCUSD) | -30.6% | 44.3% | -0.70 | 23.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with OCSL | |
|---|---|---|---|---|
| OCSL | 0.8% | 20.3% | -0.04 | - |
| Sector ETF (XLF) | 10.1% | 18.4% | 0.41 | 50.8% |
| Equity (SPY) | 12.9% | 17.2% | 0.57 | 47.4% |
| Gold (GLD) | 19.1% | 18.8% | 0.83 | 6.3% |
| Commodities (DBC) | 11.2% | 19.5% | 0.45 | 9.9% |
| Real Estate (VNQ) | 1.1% | 18.8% | -0.05 | 42.6% |
| Bitcoin (BTCUSD) | 12.5% | 52.5% | 0.42 | 23.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with OCSL | |
|---|---|---|---|---|
| OCSL | 6.2% | 26.9% | 0.25 | - |
| Sector ETF (XLF) | 12.9% | 22.1% | 0.53 | 46.3% |
| Equity (SPY) | 15.1% | 18.0% | 0.72 | 44.6% |
| Gold (GLD) | 12.1% | 16.4% | 0.61 | 5.0% |
| Commodities (DBC) | 8.3% | 18.1% | 0.37 | 16.0% |
| Real Estate (VNQ) | 4.4% | 20.7% | 0.18 | 44.7% |
| Bitcoin (BTCUSD) | 62.6% | 66.2% | 1.02 | 13.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 9/8/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/5/2026 | -0.6% | 5.6% | 8.6% |
| 5/5/2026 | -5.7% | -6.2% | -8.5% |
| 2/4/2026 | 3.3% | 1.5% | -5.6% |
| 11/18/2025 | 0.0% | 2.1% | -0.8% |
| 8/5/2025 | -1.7% | -0.4% | 2.7% |
| 5/1/2025 | -7.8% | -7.4% | 1.6% |
| 2/4/2025 | -2.8% | -3.0% | 0.4% |
| 11/19/2024 | -3.3% | -0.8% | -3.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 9 | 9 | 12 |
| # Negative | 15 | 15 | 12 |
| Median Positive | 1.2% | 2.7% | 3.1% |
| Median Negative | -2.6% | -3.0% | -3.9% |
| Max Positive | 5.1% | 8.0% | 8.7% |
| Max Negative | -7.8% | -11.1% | -8.5% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/5/2026 | -0.6% | 5.6% | 8.6% |
| 5/5/2026 | -5.7% | -6.2% | -8.5% |
| 2/4/2026 | 3.3% | 1.5% | -5.6% |
| 11/18/2025 | 0.0% | 2.1% | -0.8% |
| 8/5/2025 | -1.7% | -0.4% | 2.7% |
| 5/1/2025 | -7.8% | -7.4% | 1.6% |
| 2/4/2025 | -2.8% | -3.0% | 0.4% |
| 11/19/2024 | -3.3% | -0.8% | -3.2% |
| 8/1/2024 | -4.0% | -11.1% | -5.7% |
| 4/30/2024 | -3.6% | -3.4% | -2.1% |
| 2/1/2024 | -7.8% | -7.5% | -7.1% |
| 11/14/2023 | 0.1% | 0.2% | 3.8% |
| 8/3/2023 | -2.2% | -2.1% | -2.0% |
| 5/4/2023 | -2.6% | 0.6% | 1.3% |
| 2/7/2023 | 1.2% | -0.7% | -0.8% |
| 11/15/2022 | 5.1% | 8.0% | 7.5% |
| 8/4/2022 | -1.7% | -0.3% | -4.6% |
| 5/5/2022 | -2.2% | -5.0% | -5.4% |
| 2/3/2022 | -0.1% | -0.8% | -2.4% |
| 11/16/2021 | 0.1% | -0.9% | 0.7% |
| 8/5/2021 | 3.5% | 5.5% | 6.6% |
| 5/6/2021 | 0.1% | -4.6% | 1.0% |
| 2/4/2021 | -1.5% | 2.7% | 3.5% |
| 11/19/2020 | 2.3% | 7.5% | 8.7% |
| SUMMARY STATS | |||
| # Positive | 9 | 9 | 12 |
| # Negative | 15 | 15 | 12 |
| Median Positive | 1.2% | 2.7% | 3.1% |
| Median Negative | -2.6% | -3.0% | -3.9% |
| Max Positive | 5.1% | 8.0% | 8.7% |
| Max Negative | -7.8% | -11.1% | -8.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/05/2026 | 10-Q |
| 03/31/2026 | 05/05/2026 | 10-Q |
| 12/31/2025 | 02/04/2026 | 10-Q |
| 09/30/2025 | 11/18/2025 | 10-K |
| 06/30/2025 | 08/05/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/04/2025 | 10-Q |
| 09/30/2024 | 11/19/2024 | 10-K |
| 06/30/2024 | 08/01/2024 | 10-Q |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 02/01/2024 | 10-Q |
| 09/30/2023 | 11/14/2023 | 10-K |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/07/2023 | 10-Q |
| 09/30/2022 | 11/15/2022 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/05/2026 | 10-Q |
| 03/31/2026 | 05/05/2026 | 10-Q |
| 12/31/2025 | 02/04/2026 | 10-Q |
| 09/30/2025 | 11/18/2025 | 10-K |
| 06/30/2025 | 08/05/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/04/2025 | 10-Q |
| 09/30/2024 | 11/19/2024 | 10-K |
| 06/30/2024 | 08/01/2024 | 10-Q |
| 03/31/2024 | 04/30/2024 | 10-Q |
| 12/31/2023 | 02/01/2024 | 10-Q |
| 09/30/2023 | 11/14/2023 | 10-K |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 02/07/2023 | 10-Q |
| 09/30/2022 | 11/15/2022 | 10-K |
| 06/30/2022 | 08/04/2022 | 10-Q |
| 03/31/2022 | 05/05/2022 | 10-Q |
| 12/31/2021 | 02/03/2022 | 10-Q |
| 09/30/2021 | 11/16/2021 | 10-K |
| 06/30/2021 | 08/05/2021 | 10-Q |
| 03/31/2021 | 05/06/2021 | 10-Q |
| 12/31/2020 | 02/04/2021 | 10-Q |
| 09/30/2020 | 11/19/2020 | 10-K |
| 06/30/2020 | 08/10/2020 | 10-Q |
| 03/31/2020 | 05/07/2020 | 10-Q |
| 12/31/2019 | 02/06/2020 | 10-Q |
| 09/30/2019 | 11/20/2019 | 10-K |
Insider Activity
Updated 8/13/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Panossian, Armen | See Remarks | Direct | Buy | 8132026 | 12.69 | 1,700 | 21,581 | 285,487 | Form |
| 2 | Caldwell, Phyllis R | Direct | Buy | 3182026 | 10.77 | 2,500 | 26,925 | 253,095 | Form | |
| 3 | Gero, Deborah Ann | Direct | Buy | 3182026 | 10.78 | 2,000 | 21,558 | 263,124 | Form | |
| 4 | Caldwell, Phyllis R | Direct | Buy | 9162025 | 13.19 | 3,000 | 39,576 | 277,035 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Panossian, Armen | See Remarks | Direct | Buy | 8132026 | 12.69 | 1,700 | 21,581 | 285,487 | Form |
| 2 | Caldwell, Phyllis R | Direct | Buy | 3182026 | 10.77 | 2,500 | 26,925 | 253,095 | Form | |
| 3 | Gero, Deborah Ann | Direct | Buy | 3182026 | 10.78 | 2,000 | 21,558 | 263,124 | Form | |
| 4 | Caldwell, Phyllis R | Direct | Buy | 9162025 | 13.19 | 3,000 | 39,576 | 277,035 | Form |
Investor Activity (13F)
Updated Sep 20, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager |
|---|
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