New funding emerges for home builders

Oaktree Capital Management, a global investment firm headquartered in Los Angeles, is investing an undisclosed sum in a lender that specializes in financing home builders.

An article in the Wall Street Journal reported that Oaktree has become a big shareholder in Sabal Financial Group, which makes small loans to builders to buy and develop land and construct houses. The Newport Beach, Calif., lender has set aside at least $100 million for these loans, which carry interest rates in the 8.5% to 9.5% range.