May 20 (Reuters) - Oaktree Strategic Credit Fund's net asset value (NAV) fell in the first quarter as market volatility, spread-widening and pressure on quoted holdings drove portfolio markdowns, the non-traded private credit fund said on Wednesday in a shareholder update.

NAV per share declined to $22.38 at March 31 from $22.93 at December 31, while Class I shares posted a negative 0.14% net return.

The fund had $7 billion of investments at fair value at quarter-end, with 92.7% in senior secured investments. It made $674 million in new funded investments, including 10 private loan originations, and reported net leverage of 0.57 times.

Credit quality remained strong, with non-accruals at less than 1 basis point of the portfolio at fair value while payment-in-kind debt income accounted for 1.2% of total investment income.

Oaktree said private credit was undergoing a “recalibration” rather than systemic stress, with pressure centered on older vintages and software loans, while new lending spreads widened to SOFR plus 500-550 basis points.