Veleta Capital, LLC and funds managed by Oaktree Capital Management, L.P. have launched a strategic joint venture, Veleta Capital Partners (VCP), creating an institutional lending platform for multifamily and commercial real estate assets. Oaktree has also acquired a minority stake in Veleta Capital. Both firms are headquartered in Los Angeles. 

With a target of 12- to 36-month senior secured transition loans, VCP will focus on quality markets, assets and sponsors, combining Oaktree’s strength in global real estate and credit investment with Veleta Capital’s integrated platform and experienced team of real estate credit and investment professionals. Its initial focus will be the Western U.S., while evaluating other opportunistic transactions nationwide. 

The JV will provide short-term, senior secured loans on multifamily and commercial real estate assets. Alternative commercial assets including self-storage, cold storage, medical office properties, data centers, industrial, and warehouse properties are targets in the strategy. 

Veleta CEO Brian Murphy said the JV represented “the first vertical in a planned series of real estate lending and investment strategies. Short-term, value-add, and opportunistic lending will always be core to Veleta Capital’s strategy, and this partnership with Oaktree is a significant step toward our goals of including more comprehensive lending and technology solutions, new verticals, and strategic alliance initiatives.  

“We have already seen the value of combining our experienced team and strategic relationships with Oaktree’s access to capital, resources, and expertise, and look forward to the opportunities ahead,” he added.