T. Rowe Price acquires Oak Hill Advisors

Alternative credit manager Oak Hill bought for $4.2bn

T. Rowe Price is buying alternative credit manager Oak Hill Advisor (OHA) for a total consideration of $4.2bn, to be paid mostly in cash, as demand for alternative credit strategies among institutional investors gathers pace.

The $1.6trn investment manager will acquire 100% of the equity in OHA for up to $4.2bn, with $3.3bn of this payable upon closing. The $3.3bn will be 74% in cash and 26% in T. Rowe Price stock, with the remaining $900m in cash to be paid upon achievement of certain business milestones beginning in 2025. Outstanding OHA debt will also be settled once the deal has closed. OHA, which is $53bn in size, will transition in to T. Rowe Price's private markets platform. T. Rowe Price said in a press statement that the two firms planned to co-develop new product strategies for T. Rowe Price's...