T. Rowe Price and Oak Hill Advisors (OHA) have announced the launch of the T. Rowe Price OHA Flexible Credit Income Fund AUD (OFLEX AUD), an Australian Unit Trust designed for wholesale clients. This marks the first time OHA’s multi-strategy credit approach will be directly available to Australian wealth clients, giving them access to the USD $2 trillion global private credit market.
The fund uses OHA’s “best ideas” through a multi-strategy approach, aiming to deliver income by lending primarily to large-cap companies across diverse industries, mainly in the United States. It offers flexibility to invest across the capital structure in both private and public credit markets, including direct lending, junior capital solutions, asset-based lending, CLOs, special situations, and liquid credit. This approach allows the team to target opportunities with attractive risk-return profiles, particularly during market volatility.
Distributed by T. Rowe Price and issued by Channel Investment Management Limited, the fund will be available through Investor Directed Portfolio Service (IDPS) and Superannuation accounts.
Adam Nankervis, Melbourne-based Partner and Portfolio Manager at OHA, said: “OFLEX AUD draws on OHA’s three decades of experience in credit selection, structuring, and prudent risk management. A core tenet of our investment process since inception has been a focus on downside protection and capital preservation, which has allowed us to successfully navigate multiple credit cycles. We believe the current backdrop, with secular tailwinds for private markets and the challenges from an uncertain rate environment, is creating exciting opportunities for flexible capital within alternative credit. Our dynamic approach allows us to capture these opportunities for our clients while maintaining a disciplined risk framework.”
OHA manages approximately USD $108 billion in alternative credit assets globally and has served Australian institutional investors for over 20 years. T. Rowe Price acquired OHA in December 2021 to accelerate its expansion into alternative markets.
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Darren Hall, Australia and New Zealand Country Head at T. Rowe Price, said: “Unlike most existing offerings in the Australian private credit market, which see significant concentration in real estate and higher-risk property development, OFLEX AUD delivers broad exposure across a wide spectrum of sectors. This disciplined diversification is designed to help mitigate sector-specific risks, while enhancing portfolio resilience for Australian investors.
“The launch of OFLEX AUD reflects growing local demand for sophisticated alternative credit solutions among advisers and family offices. By combining OHA’s renowned alternative credit investment expertise with T. Rowe Price’s established distribution network, we aim to expand access for high-net-worth Australian investors to diversify their portfolios with high-quality alternative credit. This partnership underscores our commitment to providing advisers and their clients with innovative investment options and local expertise, helping them navigate a changing market environment.”
