T. Rowe Price Partners with OHA to Launch Innovative Credit Income Fund, OFLEX

T. Rowe Price and OHA Unveil Innovative Credit Income Fund

T. Rowe Price Group, in collaboration with Oak Hill Advisors (OHA), introduces the T. Rowe Price OHA Flexible Credit Income Fund (OFLEX), a pioneering multi-strategy interval fund aimed at providing a blend of public and private market credit exposure. This fund is poised to attract a broad spectrum of investors by offering access to OHA's alternative credit strategies through a publicly offered interval fund structure. Investors can purchase shares on a daily basis, complemented by quarterly repurchase offers of at least 5% at Net Asset Value (NAV), thereby ensuring liquidity and flexibility that aligns with contemporary investment needs.

The OFLEX fund adopts a versatile investment approach, targeting various credit sectors, including direct lending, junior capital solutions, and collateralized loan obligations (CLOs). By deploying a multi-strategy methodology, OFLEX intends to identify lucrative investment opportunities that remain resilient during periods of market volatility. Glenn August, CEO of OHA, articulates the alignment of this fund with their foundational ethos, emphasizing a robust risk management framework that remains pivotal in their investment strategy. This thorough approach enables OFLEX to capitalize on current credit market dynamics while minimizing exposure to potential downturns.

Dee Sawyer, Head of Global Distribution at T. Rowe Price, highlights the growing investor demand for solutions that not only mitigate risk but also provide dependable income streams. Interval funds like OFLEX represent a response to this demand, delivering exposure to diverse credit markets while safeguarding investors' interests. With OHA managing approximately USD $111 billion in alternative credit assets globally, the expertise behind OFLEX is substantial, grounded in three decades of proven credit selection and risk management. This collaboration represents a significant enhancement of T. Rowe Price's alternative investment offerings, expanding their footprint in the global investment landscape.

In addition to the launch of the OFLEX fund, T. Rowe Price and OHA's partnership signals a strategic response to shifting market trends, particularly a growing appetite for flexible and resilient investment solutions among clients. The two firms are committed to leveraging their combined capabilities to meet this evolving demand, ensuring investors can navigate the complexities of the credit markets effectively.

The introduction of OFLEX not only reflects an innovative product development but also strengthens T. Rowe Price's presence in the alternative investment space, aligning with the company's focus on delivering strategic solutions that cater to investors' long-term financial objectives.