Raghav Khanna

About Raghav Khanna

Raghav Khanna is Co‑Chief Investment Officer (Co‑CIO) of Oaktree Specialty Lending Corporation (OCSL) since November 15, 2024. He is 41, joined Oaktree in 2012, was a founding member of its Strategic Credit strategy in 2014, and previously worked at The Carlyle Group (financial services buyouts) and Goldman Sachs (analyst). He holds a B.S. in electrical engineering and economics from Yale University and an MBA from Stanford Graduate School of Business . During his tenure, management commentary highlights disciplined first‑lien origination, a robust deployment pipeline for newly raised equity, and improved portfolio leverage and coverage metrics, reflecting execution focus on risk‑adjusted returns .

Past Roles

External Roles

Fixed Compensation

• OCSL’s executive officers do not receive direct compensation from the Company; compensation is paid by Oaktree or its affiliates. As a BDC, OCSL is prohibited under the Investment Company Act from issuing equity incentive compensation (stock options, restricted stock) to officers or directors .
• The Compensation Committee only reviews reimbursement of allocable compensation for the CFO, CCO, and non‑investment professionals (FY2024: $1.5m incurred; $1.1m reimbursed) .

Performance Compensation

• Adviser fee structure (alignment at the vehicle level):
  • Base management fee: 1.00% of gross assets excluding cash (with temporary waivers tied to the OSI2 merger) .
  • Incentive fees: 17.5% of pre‑incentive fee net investment income, subject to a hurdle and catch‑up; 17.5% of cumulative realized capital gains net of losses/depreciation since FY2019 (capital gains fee), with merger‑related adjustments to prevent over‑charging .

Note: Personal incentive metrics/awards for Mr. Khanna (e.g., RSUs/PSUs, targets) are not disclosed; OCSL does not grant equity to officers .

Equity Ownership & Alignment

• Stock ownership guidelines apply to independent directors (target: hold stock equal to prior‑year cash compensation); no equity plans for officers .
• Securities Trading Policy: prohibits short sales or derivative short positions in Company securities; pledging permitted only with pre‑approval from the Chief Compliance Officer (limited cases) .
• As of January 2025, no beneficial ownership for Mr. Khanna was reported; Section 16(a) footnote clarifies table includes only reporting persons .

Employment Terms

• Appointment: Elected Co‑CIO on November 15, 2024; no related‑party transactions under Item 404(a) and no family relationships disclosed .
• Externally managed structure: Executive officers are Oaktree personnel; no Company‑level employment contract, severance, or CoC economics disclosed for Mr. Khanna. Advisory and administration agreements are terminable by the Board or stockholders on 60 days’ notice; fees and services prescribed therein .
• Trading/Compliance: Code of Business Conduct and Securities Trading Policy enforced by the CCO; independent directors meet in executive session with CCO at least annually .

Performance & Track Record

• Portfolio construction during tenure:
  • First‑lien focus and platform scale highlighted; all originations in Q3 2025 were first‑lien; pipeline positioned to deploy new equity and leverage over multiple quarters .
  • Portfolio metrics improved: Median EBITDA ~$161m (up ~$3m QoQ); weighted average leverage down to 5.1x (from 5.2x); interest coverage up to 2.2x (from 2.1x) as of June 30, 2025 .

• FY results context (pre‑appointment performance baseline):
  • Total investment income rose to $381,665k in FY2024 (from $379,286k in FY2023); NII $175,052k; NAV per share $18.09 at FY2024 end .
  • Quarterly distribution declared $0.55 per share in November 2024 .

• Analyst call remarks emphasize disciplined underwriting, diversification, and swift deployment of new equity to mitigate cash drag, net of anticipated repayments .

Governance and Compensation Committee Analysis

• Compensation Committee (independent directors): Jacobson (Chair), Zimmerman, Caldwell, Gero. Scope limited to reimbursement approval for CFO/CCO and other non‑investment professionals; no direct officer pay decisions due to external management model .
• Board leadership and risk oversight: Lead Independent Director (Zimmerman); Audit/Nominating committees fully independent; Co‑Investment Committee oversees affiliated co‑investments per SEC exemptive order .

Say‑on‑Pay & Shareholder Feedback

• 2025 AGM agenda: election of one director; auditor ratification. No say‑on‑pay item; OCSL does not disclose officer compensation due to external management structure .

Related Party Transactions and Red Flags

• Advisory and administration agreements with Oaktree and its affiliate; fee waivers tied to OSI2 merger; robust disclosure of conflicts management and co‑investment framework. No Item 404(a) related‑party transactions for Mr. Khanna disclosed .

Compensation & Financial Benchmarks (Company‑Level)

Values with asterisk retrieved from S&P Global.

Equity Ownership & Alignment (Board/Executive Snapshot, Jan 2025)

*Represents less than 1% .

Investment Implications

• Pay‑for‑performance alignment at vehicle level: As Co‑CIO, Khanna operates within OCSL’s fee framework that rewards sustained NII generation and realized gains; no Company‑issued equity awards or direct pay disclosure reduces personal‑level transparency but structurally aligns the Adviser to portfolio outcomes .
• Retention risk: External management model and senior roles within Oaktree’s Strategic Credit/Direct Lending platforms suggest retention levers reside at Oaktree (not OCSL); absence of Company‑level severance/CoC terms for officers implies limited issuer‑side retention economics; no pledging/hedging allowed absent CCO approval reduces misalignment risk .
• Near‑term trading signals: Management commentary indicates improved portfolio coverage/leverage and first‑lien discipline; a robust deployment pipeline should mitigate cash drag from new equity, supporting NII coverage of dividends over ensuing quarters if execution meets guidance .