T. Rowe Price is launching a new credit fund via its alternatives subsidiary Oak Hill Advisors (OHA).

The asset manager has filed paperwork for the T. Rowe Price OHA Flexible Credit Income fund with the US Securities and Exchange Commission (SEC).

It is an interval fund that will allocate up to 50 per cent of its portfolio to direct lending, and up to 30 per cent to junior capital solutions, CLOs/structured credit, liquid credit, special situations and real asset credit.

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“The fund intends to capitalize on the significant ongoing growth in credit, particularly for financing solutions for well-established, larger companies generally with EBITDA of $75m (£58.7m) or greater and OHA’s deep expertise in this area,” the filing said.

The fund will conduct quarterly repurchase offers for five to 25 per cent of its outstanding shares at net asset value.

There will be three share classes for the fund with different fee structures, the details of which have not been disclosed yet.

The fund will charge an ‘income incentive’ fee in addition to its management fee.

Read more: T.Rowe Price private credit fund issues Q1 distributions

Asset management firm T. Rowe Price acquired Oak Hill Advisors in 2021 to boost its presence in private markets. The alternative credit specialist has $64bn of assets under management and invests globally.

It launched the T. Rowe Price OHA Select Private Credit Fund as a business development company in the US in October 2023 with an initial $1.5bn of capital.

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