Oak Hill Advisors, the private‑credit arm of T. Rowe Price, closed its flagship senior private‑lending vehicle, OLEND, on December 11, 2025, raising a total of $17.7 billion in available capital, of which $8.0 billion came from equity commitments. The fund will deploy capital through first‑lien and unitranche loans to North American companies with EBITDA exceeding $75 million, focusing on sectors that are considered recession‑resistant such as healthcare, technology services, and consumer staples.
The $17.7 billion raise represents Oak Hill’s largest flagship fund to date and expands T. Rowe Price’s alternatives business, which reported a record $1.77 trillion in assets under management in Q3 2025. While the firm’s Q3 earnings highlighted net client outflows of $7.9 billion and a decline in effective fee rates, the new OLEND capital provides a significant growth engine for the alternatives segment, which had $50 billion in AUM in 2024 and is expected to grow further as Oak Hill continues to launch new credit vehicles.
Oak Hill’s senior‑lending strategy is designed to capture opportunities in a market where traditional banks are tightening credit. By targeting larger, EBITDA‑rich companies, the fund seeks to generate stable cash flows and mitigate downside risk. The focus on recession‑resistant sectors is intended to preserve capital during economic uncertainty, positioning the fund to deliver attractive risk‑adjusted returns for investors seeking diversification beyond public markets.
T. Rowe Price’s partnership with Goldman Sachs, announced earlier this year, will integrate Oak Hill’s private‑credit expertise into new investment solutions, broadening the firm’s product suite and extending its reach to a wider institutional client base. The collaboration underscores the firm’s commitment to expanding its alternatives offering and leveraging Oak Hill’s deep credit expertise.
Oak Hill has also recently closed other credit funds, including the OHA CLO Enhanced Equity Fund III, which raised $1.1 billion and will support approximately $10 billion in CLO investments. These fundraising activities signal a robust pipeline of capital and a strategic focus on scaling its credit platform across multiple vehicle types.
Glenn August, founder and CEO of Oak Hill, said the OLEND close “marks a milestone for Oak Hill and demonstrates the confidence investors have in our senior‑lending strategy.” Portfolio Manager Alan Schrager added that the fund “extends our established credit platform and positions us to capture attractive relative value in unitranche financing.”
The OLEND close strengthens Oak Hill’s competitive position in the private‑credit market, enabling it to pursue larger deals and attract sophisticated institutional investors. For T. Rowe Price, the new capital reinforces its alternatives business, providing a scalable source of growth that complements its broader asset‑management strategy.
The announcement is a significant development for both Oak Hill and T. Rowe Price, reflecting a broader industry shift toward private credit as a growth engine and a diversification tool for institutional investors.
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