BALTIMORE, Dec. 20,
2023 /PRNewswire/ -- T. Rowe
Price and Oak Hill Advisors ("OHA") are pleased to announce
the launch of the T. Rowe Price OHA Select Private Credit Fund
("OCREDIT") on iCapital Marketplace, the all-digital investment
platform that connects financial advisors with alternative
investment opportunities offered by the world's largest investment
providers and asset managers.
OCREDIT delivers an OHA-managed private credit investment
solution for income-oriented individual investors with the
convenience of a non-traded, perpetual-life business development
company ("BDC") structure. OCREDIT launched in October 2023 with $1.5
billion of investible capital, making it one of the
industry's largest non-traded BDC launches.
"Before the prevalence of the BDC structure, private credit had
historically only been available to institutional investors," said
Eric Muller, portfolio manager and
partner at OHA and OCREDIT chief executive officer. " iCapital
is an important partner to bring OHA's private credit capabilities
to a wider investor audience, and we're excited to offer
streamlined access to OCREDIT through the iCapital
Marketplace."
OCREDIT seeks to generate attractive returns driven by generally
strong and stable current income through different market
environments, including periods of market volatility. The fund
invests in a diversified portfolio of primarily senior secured,
privately originated loans to larger, well-established,
recession-resistant companies located predominantly in North America. The fund harnesses the
differentiated capabilities of OHA's $63
billion credit specialist platform developed and proven over
its 30-year history.
The offering is supported by iCapital's end-to-end technology
platform that streamlines and automates the alternative investing
process, from subscription documentation to investor reporting.
iCapital Marketplace delivers an all-digital investment experience
that bridges the gap that has historically separated asset
managers, advisors and clients from alternative investments.
"We are delighted to partner with Oak Hill Advisors to offer
their clients' institutional quality private credit
investments1 on iCapital Marketplace." said Lawrence Calcano, Chairman and CEO of iCapital.
"OHA's investment team has a broad perspective on private credit
opportunities that provides wealth advisors and their clients with
access to investment opportunities that capture both relative and
absolute value across this asset class."
Advisors interested in exploring OCREDIT can log into their
existing iCapital account to view the fund's profile, which
includes additional information on the offering and subscription
documents. Advisors not already using iCapital's platform can
easily register for access through the iCapital website.
ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ: TROW)
helps people around the world achieve their long-term investment
goals. As a large global asset management company known for
investment excellence, retirement leadership, and independent
proprietary research, the firm is built on a culture of integrity
that puts client interests first. Investors rely on the
award-winning firm for its retirement expertise and active
management approach of equity, fixed income, alternatives, and
multi-asset investment capabilities. T. Rowe
Price manages USD $1.39 trillion in assets under
management as of November 31, 2023, and serves millions of
clients globally. News and other updates can be found
on Facebook, Instagram, LinkedIn, X, YouTube,
and troweprice.com/newsroom.
ABOUT OAK HILL ADVISORS
Oak Hill Advisors (OHA) is a leading global credit-focused
alternative asset manager with over 30 years of investment
experience. OHA works with institutions and individuals and seeks
to deliver a consistent track record of risk-adjusted returns with
downside focus. The firm manages approximately $63 billion of capital across credit strategies
in commingled funds, collateralized loan obligations and single
investor mandates as of September 30,
2023. OHA's emphasis on long-term partnerships with
companies, sponsors and other partners provides access to a
proprietary opportunity set allowing for customized credit
solutions with strength across all market cycles.
With over 420 experienced professionals across six global
offices, OHA brings a collaborative approach to offering investors
a single platform to meet their diverse credit needs. OHA is the
private markets platform of T. Rowe Price Group, Inc. (NASDAQ – GS:
TROW). For more information, please visit oakhilladvisors.com.
For a more detailed description of OCREDIT's investment
guidelines and risk factors, please refer to the prospectus.
Consider the investment objectives, risks, and charges and expenses
carefully before investing or sending money. For a free prospectus
containing this and other information, call 1-855-405-6488 or visit
www.troweprice.com. Read it carefully.
A business development company ("BDC") is a special
closed-end investment vehicle that is regulated under the 1940 Act
and used to facilitate capital formation by smaller U.S. companies.
BDCs are subject to certain restrictions applicable to
investment companies under the 1940 Act. As a BDC, at least 70% of
our assets must be the type of "qualifying" assets listed in
Section 55(a) of the 1940 Act, as described herein, which are
generally privately- offered securities issued by U.S. private
companies or U.S. publicly-traded companies with market
capitalizations less than $250
million.
OCREDIT is a non-exchange traded BDC that expects to invest at
least 80% of its total assets (net assets plus borrowings for
investment purposes) in private credit investments (loans and other
credit investments that are issued in private offerings or
issued by private companies). This investment involves a high
degree of risk. An investor should purchase these securities
only if they can afford the complete loss of the investment.
Neither the Securities and Exchange Commission nor any state
securities regulator has approved or disapproved of these
securities or determined if this prospectus is truthful or
complete. Securities regulators have also not passed upon
whether this offering can be sold in compliance with existing
or future suitability or Regulation Best Interest' standard to any
or all purchasers.
As of October 4, 2023, OCREDIT is
available in 51 states and territories, excluding Arkansas, Massachusetts, and Washington. No offers or sales of OCREDIT
securities may be made to residents of Arkansas, Massachusetts, and Washington. As of October 4, 2023, OCREDIT is not registered for
offer or sale outside of the United
States.
BDCs may charge management fees, incentive fees, as well as
other fees associated with servicing loans. These fees will detract
from the total return.
OCREDIT may in certain circumstances invest companies
experiencing distress increasing the risk of default or failure.
OCREDIT is not listed on an exchange, which heightens the liquidity
risk.
OCREDIT has limited prior operating history, and there is no
assurance that it will achieve its investment objectives.
This is a "blind pool" offering and thus investors will not have
the opportunity to evaluate our investments before we make
them. Investors should not expect to be able to sell shares
regardless of performance and should consider that they may not
have access to the money invested for an extended period of time
and may be unable to reduce their exposure in a market
downturn.
OCREDIT employs leverage, which increases the volatility of
OCREDIT's investments and will magnify the potential for loss.
Fixed income securities are subject to credit risk, call risk, and
interest rate risk. As interest rates rise, bond prices fall.
Investments in high yield bonds involve greater risk.
International investments can be riskier than U.S. investments and
subject to foreign exchange risk.
OCREDIT is "non-diversified," meaning it may invest a greater
portion of its assets in a single company. OCREDIT's share
price can be expected to fluctuate more than that of a comparable
diversified fund. OCREDIT may invest in derivatives, which may be
riskier or more volatile than other types of investments
because they are generally more sensitive to changes in market or
economic conditions.
Account opening and closing fees may apply depending on the
amount invested and the timing of the account closure. There may be
costs associated with the investments in the account such as
periodic management fees, incentive fees, loads, other expenses or
brokerage commissions. Fees for optional services may also
apply.
Opinions and estimates offered herein constitute the judgment of
Oak Hill Advisors, L.P. as of the date this document is provided to
an investor and are subject to change as are statements about
market trends. All opinions and estimates are based on assumptions,
all of which are difficult to predict and many of which are beyond
the control of Oak Hill Advisors, L.P. In preparing this document,
Oak Hill Advisors, L.P. has relied upon and assumed, without
independent verification, the accuracy and completeness of all
information. Oak Hill Advisors, L.P. believes that the information
provided herein is reliable; however, it does not warrant its
accuracy or completeness. Certain information contained in the
materials discusses general market activity, industry, or sector
trends, or other broad-based economic, market or political
conditions and should not be construed as research or investment
advice.
Diversification cannot assure a profit or protect against loss
in a declining market. Potential investors are urged to consult a
tax professional regarding the possible economic, tax, legal, or
other consequences of them investing in OCREDIT in light of their
particular circumstances. In the United States, securities are
offered through T. Rowe Price Investment Services, Inc., a broker
dealer, registered with the U.S. Securities and Exchange Commission
and a member of FINRA.
Securities are offered through T. Rowe Price Investment
Services, Inc., and advisory services are offered by Oak Hill
Advisors, L.P. OHA is a T. Rowe
Price company.
© 2023 Oak Hill Advisors. All Rights Reserved. OHA is a
trademark of Oak Hill Advisors, L.P. T. ROWE PRICE is a trademark of T. Rowe Price
Group, Inc. All other trademarks shown are the property of their
respective owners. Use does not imply endorsement, sponsorship, or
affiliation of Oak Hill Advisors with any of the trademark
owners.
202312-3290105
1 OCREDIT seeks to provide the same type of private
credit investment solution to individual investors that was
previously largely only available to OHA's institutional
clients.
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SOURCE T. Rowe Price Associates, Inc.; OHA