T Rowe Price has acquired alternative credit manager Oak Hill Advisors in an effort to build out its footprint in private markets.
Oak Hill Advisors has $53bn (£38.4bn) under management across private, distressed, special situations, liquid, structured credit, and real asset strategies. T Rowe Price acquired the New York-headquartered business for approximately $4.2bn with $3.3bn payable at closing and up to $900m further upon the achievement of certain business milestones by 2025.
Oak Hill will become T Rowe Price’s private market platform but will remain a standalone business. It has more than 300 employees globally.
T Rowe Price group CIO and head of investments Rob Sharps (pictured) said: “As we bring together complementary capabilities and distribution, we can capitalise on growth opportunities for new product development that add value for our clients and stockholders. We share a vision with OHA’s seasoned management team to build a broader business in private markets by combining their specialty in alternative credit with our global scale.”
T Rowe Price chair and chief executive Bill Stromberg said: “While we are committed to our long-term strategy to grow our business organically, we have also taken a deliberate and thoughtful approach to considering adding new capabilities through acquisitions that advance our business strategy. OHA meets the high bar we have set for inorganic opportunities.
