T. Rowe Price and Oak Hill Advisors (OHA) have launched a multi-strategy credit interval fund aimed at the US wealth market that can invest across the credit spectrum in both private and public markets.
The T. Rowe Price OHA Flexible Credit Income Fund (OFLEX) will be able to invest across the broad alternative credit universe, including in direct lending, junior capital solutions, asset-based lending, collateralised loan obligations (CLOs), liquid credit, and special situations.
By deploying an “all weather” strategy, the investment team will be able to seek opportunities through different market environments, identifying attractive risk-return profiles during periods of market volatility.
The fund launch comes amid investor jitters in the US wealth market, as heightened concerns around credit quality in private credit prompted a sell-off in business development companies (BDCs).
The rise in redemption requests has seen some BDCs move to limit outflows, while the industry has sought to allay investor fears about private credit’s exposure to the software sector.
“OFLEX is built to seek to capitalise on our best ideas across the OHA platform, applying a consistent investment process and a rigorous focus on risk management as we pursue stable, income‑generating investments across both liquid and private credit markets,” said Glenn August, founder and chief executive of OHA.
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As an interval fund, OFLEX will be available for purchase on a daily basis via ticker trading and will conduct quarterly repurchase offers of at least five per cent of outstanding shares at net asset value.
Dee Sawyer, head of global distribution for T. Rowe Price, added that in the “evolving” market environment, clients are asking for investment solutions that can help manage risk and provide consistent income.
“Interval funds offer a unique combination of flexibility and access to private and public credit markets, helping investors pursue their long-term financial goals,” Sawyer said.
In 2021, T. Rowe Price acquired OHA, which currently manages approximately $111bn (£82.8bn) in alternative credit assets globally, thereby accelerating its expansion into private markets.
They launched their first joint offering in 2024, the T. Rowe Price OHA Select Private Credit Fund, a private credit investment solution aimed at income-oriented individual investors with a non-traded, perpetual-life BDC structure.
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