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October 29, 2021

T. Rowe Price buys Oak Hill Advisors to enter alternative investment markets

By Verdict Staff

T. Rowe Price Group has agreed to acquire alternative credit manager Oak Hill Advisors (OHA) in a bid to foray into the alternative investment markets.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
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  • Assess and showcase the growth potential for various Industries in the target economy
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by GlobalData
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The baltimore-based asset manager is purchasing 100% of the equity of OHA and related entities in a cash and stock deal valued at $4.2bn.

Rowe intends to run OHA as its private markets platform as an increasing number of institutional as well as individual investors seek exposure to the sector.

The platform is expected to enhance T. Rowe’s ongoing strategic investments in its core investments and distribution capabilities while complementing its existing global platform.

T. Rowe Price CEO Bill Stromberg said: “OHA meets the high bar we have set for inorganic opportunities, and their proven private credit expertise will help us meet our clients’ demand for alternative credit.”

As of 31 July 2021, OHA had $53bn of capital under management across its private, distressed, special situations, liquid, structured credit, and real asset strategies. It has over 300 employees globally.

Under the agreement, OHA will operate as a separate business within T. Rowe and maintain autonomy over its investment process.

Rowe will provide $500m for co-investment and seed capital alongside OHA management and investors.

OHA will work with T. Rowe to develop new products and strategies for the latter’s wealth and retail channels, including its bank, broker-dealer, RIA, and platform businesses.

The companies also plan to explore additional alternative asset categories in the future.

OHA founder and CEO Glenn August said: “T. Rowe Price and OHA share a consistent approach, focusing on investment excellence, integrity, collaborative culture, and client partnership, that will help us build a stronger combined organisation.”

In March this year, T. Rowe Price launched an investment research office in Shanghai to strengthen its research coverage.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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