T. Rowe Price and Oak Hill Advisors announced the launch of their joint investment offering, the T. Rowe Price OHA Select Private Credit Fund (OCREDIT), an OHA-managed private credit investment “solution” for investors via a non-traded, perpetual-life business development company structure.
OCREDIT is launching with $1.5 billion of investible capital, making it one of the industry’s largest non-traded BDC launches. This includes over $600 million raised in equity commitments from T. Rowe Price and a group of global institutional investors with, according to T. Rowe Price and OHA, long-term investment orientations, in addition to $875 million in credit facility commitments. OCREDIT says it will build on this momentum by opening this perpetual offering to individual investors.
“From the beginning of our partnership with OHA, we have shared a vision to build a broader business in private markets by combining their expertise in private credit with T. Rowe Price’s global scale,” said Rob Sharps, chief executive officer and president of T. Rowe Price. “OCREDIT offers just that, bringing the benefits of private credit – historically available only to institutional investors – to individual investors and their advisors.”
According to OHA and T. Rowe Price, OCREDIT invests in a diversified portfolio of primarily senior secured, privately originated loans to larger, well-established, recession-resistant companies located predominately in North America.
“We expect the substantial growth in demand for private financing solutions to continue to drive an attractive investment opportunity for OCREDIT,” said Alan Schrager, senior partner and portfolio manager at OHA and chairman of OCREDIT. “We believe that directly originated loans at the top of the capital structure offer the most attractive absolute and relative value in corporate credit currently. Our highly selective approach and deep expertise as a leading credit specialist over decades also position us to manage downside risk across market cycles.”
T. Rowe Price acquired Oak Hill Advisors, L.P., in December 2021.
Founded in 1937, T. Rowe Price is a large global asset management company focused on retirement and active management of equity, fixed income, multi-asset and alternatives investment capabilities. T. Rowe Price manages $1.4 trillion in assets under management as of August 31, 2023.
OHA is an alternative investment firm specializing in private lending, distressed credit, structured credit, real assets, special situations, leveraged loans, and high yield bonds. OHA manages approximately $61 billion of capital across credit strategies in pooled funds, collateralized loan obligations, and single investor mandates as of June 30, 2023.