The product is being pitched to registered investment advisers as an easy-to-sell entry into direct lending.
The industry is dealing with tenewed competition from banks and lagging demand for private capital.
Fund managers in this market are often valuing their loans more generously than others do.
A healthcare buyout shows the lines between banks and private lenders are getting blurred.
The Oaktree Life Sciences Lending Fund will lend directly to biopharmaceutical and medical device companies.