Oaktree Capital Strengthens Its Presence in the Iberian Real Estate Market with the Acquisition of Xenia Capital

The firm doubles down on alternative real estate lending in Spain and Portugal after more than €220 million in joint investments

Oaktree Capital Management, through its managed funds, has announced the acquisition of Xenia Capital, a leading platform in alternative real estate financing, along with its loan portfolio, previously owned by Pacific Investments. This strategic move reinforces Oaktree’s foothold in the fast-growing Iberian property market, paving the way for accelerated growth in Spain and Portugal.

A Strategic Alliance Driving Real Estate Expansion

The acquisition solidifies a collaboration that has spanned the past three years, during which Oaktree and Xenia have jointly deployed over €220 million in investments across Spain, focusing on high-value projects in strategic locations.

With Oaktree’s backing, Xenia Capital is set to fast-track its expansion across the Iberian Peninsula, leveraging the firm’s financial strength, deep expertise in private credit, and long-term vision.

Continued Leadership and New Funding to Fuel Expansion

Rory Buchanan (CEO) and Gonzalo Barrios (Managing Partner) will remain at the helm of Xenia Capital, ensuring a seamless transition and continued strategic focus on key markets such as Madrid, Barcelona, and the Costa del Sol.

In addition, Xenia has secured €200 million in preferred financing from JP Morgan, aimed at supporting the company’s growth strategy and expanding its operational capabilities. The facility will enable Xenia to fund both existing projects and new high-potential investments.

A Diversified Portfolio Focused on Strategic Asset Classes

Xenia Capital manages a diversified real estate loan portfolio that includes:

• * Multifamily rental buildings,
• * Build to Sell and Build to Rent developments,
• * Coliving projects,
• * and five-star hotels in prime tourist destinations.
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This diversified investment strategy, with a focus on premium locations and innovative residential models, positions Xenia as one of the most dynamic players in alternative real estate financing across Southern Europe. 

Oaktree Backs Private Credit as a Growth Driver in Iberian Real Estate

According to Nael Khatoun, Portfolio Manager in Oaktree’s European Private Debt strategy, the acquisition of Xenia is a natural evolution of their strategic alliance, reinforcing Oaktree’s long-term commitment to the Iberian real estate market. Khatoun emphasized Xenia’s strong growth potential and the opportunity to expand its role as a key provider of alternative real estate financing.

Rory Buchanan, CEO of Xenia, noted that the company is now well positioned to scale its business model, leveraging Oaktree’s capital and industry expertise to launch a new phase of expansion and international growth.