T. Rowe Price’s private credit fund portfolio grows by $285.3m in Q3
T. Rowe Price’s OHA Select Private Credit Fund saw its portfolio grow by $285.3m (£220m) over the third quarter, generating a yield of 11.6 per cent.
The fund invested in 10 new portfolio companies during the period, meaning it now has exposure to 103 portfolio companies across 22 sectors.
The fund distributed $0.84 per share in the third quarter, of which $0.15 per share was a special distribution.
Read more: T. Rowe Price’s Oak Hill Advisors plans new credit fund
Net asset value per share was $27.83 as of 30 September, down by 0.5 per cent from $27.98 as of 30 June.
“We are satisfied with the overall construct and health of the portfolio and its ability to generate income in an environment where investors are increasingly focused on yield”, said chief executive Eric Muller.
The fund – which invests in senior secured, floating rate loans to companies in North America and Europe – said it continues to expand and diversify its borrowing facilities to ensure they are sized appropriately and to ensure appropriate terms and conditions.
Read more: T.Rowe Price private credit fund issues Q1 distributions
Last month, it upsized its JP Morgan credit facility to $665m from $475m and negotiated a reduction in the cost of its BNP Paribas facility to S+225 from S+300.
“We are pleased with both the upsize and repricing, as it highlights our banking relationships across multiple lenders and provides us the necessary capacity for our capital pipeline as we head into year end and 2025,” said chief financial officer Gerard Waldt.
Asset manager T. Rowe Price acquired Oak Hill Advisors in 2021 to boost its presence in private markets. It then 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.
Read more: T. Rowe Price puts private credit fund on iCapital
