Our Business Development Company Investment Recovery Law Firm Is Investigating

The law firm Shepherd Smith Edwards and Kantas is investigating potential broker misconduct regarding the Oaktree Strategic Credit Fund, a risky and illiquid non-traded business development company facing a surge in investor redemption requests, lowered monthly income, and a decline in share value. Investors who suffered losses may have grounds for a financial recovery claim if brokerage firms unsuitably recommended the fund or failed to properly disclose its significant risks.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is speaking to investors who may have suffered losses in the Oaktree Strategic Credit Fund. There are growing concerns over this non-traded business development company (BDC) in the wake of an increase in investor redemption requests, the decline in its value, and a reduction in investors’ monthly income.

What Is The Oaktree Strategic Credit Strategic Fund Non-Traded BDC?

• This is a perpetual-life business development company run by Oaktree Capital Management. It mostly invests in privately negotiated loans to middle-market companies. It was supposed to offer investors steady income and diversification.
• The Fund originates and invests in floating-rate corporate debt, as well as public debt.
• This non-traded BDC was offered to accredited investors as a way to access private credit markets.
• This is a risky, illiquid, complex and non-transparent investment that should not be sold to retail investors. It uses debt, which can enhance losses. How the companies it invests in performs may also have an impact.

Why Might Oaktree Strategic Credit Fund Investors Have Reason To Worry?

Withdrawals in the private credit market, which this non-traded BDC is a part of, continue.

More than $2.9B in redemption requests were made toward the end of 2025—a 200% rise from the previous quarter.

As for this Fund: 

• Oaktree Strategic Credit Fund investors have seen their monthly investment income lowered by about 11% down to 16 cents/share.
• Originally sold for $25/share, at the end of February 2026 the Fund’s value went down to $22.64/share.
• Oaktree investors have asked for redemptions of approximately 6.8% of this Fund’s shares. Seeing as this non-traded BDC only redeems 5% of its shares/quarter—and it did go on to raise that limit—redemption demands have exceeded this limit.
• An affiliated company had to buy shares with a promissory note to meet that demand.

Do I Have Grounds for a Non-traded BDC Loss Claim Against Your Broker?

Oaktree Strategic Credit Fund should only have been sold to qualified, accredited investors. Like other non-trade business development companies, retail investors who are unwilling to take on much risk or want immediate access to their funds should not get involved.

Shepherd Smith Edwards and Kantas is investigating whether there were brokers who unsuitably recommended the Oaktree Strategic Credit Fund to customers, failed to properly apprise them of the risks, neglected to do the proper due diligence, overconcentrated an investor’s portfolio with this non-traded BDC and other alternative investments, or committed some other type of broker misconduct or negligence.

Why Should I Hire A Securities Law Firm To Represent My Oaktree Strategic Credit Fund Claim?

• Suing a brokerage firm is never easy, especially when complex investments are involved.
• You also will likely have to make your investment loss recovery case in FINRA arbitration, which is not something you want to do without savvy FINRA attorneys that understand non-traded REITs on your side.

If you are wondering whether you have reason to sue your broker for involving you in the Oaktree Strategic Credit Fund, which caused you to sustain serious losses, it is important that you contact our non-traded BDC lawyers right away. The Shepherd Smith Edwards and Kantas Investment Recovery Law Firm is experienced in handling complex securities claims against brokerage firms and their registered representatives. Our knowledgeable non-traded BDC investor attorneys have helped many clients win awards and secure settlements from their brokers.

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Call our Investment Recovery Law Firm at (800) 259-9010 or contact us online.