Press release
T. Rowe Price To Acquire Oak Hill Advisors, Accelerating Expansion Into Alternative Investment Markets
OHA, a Leading Alternative Credit Manager with $53 Billion of Capital Under Management, to Become T. Rowe Price's Private Markets Platform T. Rowe Price and
About this update from T. Rowe Price Group, Inc.
[{"type":"text","content":"OHA, a Leading Alternative Credit Manager with $53 Billion of Capital Under Management, to Become T. Rowe Price's Private Markets Platform\n T. Rowe Price and OHA Plan to Scale Alternative Credit Capabilities Globally as Investor Demand Grows\n OHA to Operate Under the Leadership of Its CEO and Current Management Team\n T. Rowe Price to Host Conference Call Today at 9 a.m. Eastern Time\n\n\nBALTIMORE and NEW YORK, Oct. 28, 2021 /PRNewswire/ -- T. Rowe Price Group, Inc. (NASDAQ-GS: TROW), today announced a definitive agreement to purchase Oak Hill Advisors, L.P. (OHA), a leading alternative credit manager.\nUnder the terms of the transaction, T. Rowe Price will acquire 100% of the equity of OHA and certain other entities that have common ownership for a purchase price of up to approximately $4.2 billion, with $3.3 billion payable at closing, approximately 74% in cash and 26% in T. Rowe Price common stock, and up to an additional $900 million in cash upon the achievement of certain business milestones beginning in 2025. The purchase price includes the retirement of OHA debt outstanding at closing. Excluding amortization of intangibles and the expense impact of the earnout, the transaction is expected to be accretive to T. Rowe Price diluted earnings per share by a low-to-mid single digit percentage in 2022.\nOHA, a leading alternative credit manager, will become T. Rowe Price's private markets platform, accelerating T. Rowe Price's expansion into alternative investment markets and complementing T. Rowe Price's existing global platform and ongoing strategic investments in its core investments and distribution capabilities. Alternative credit strategies continue to be in demand from institutional and retail investors across the globe seeking attractive yields and risk-adjusted returns.\nWith $53 billion of capital under management as of July 31, 2021,1 across its private, distressed, special situations, liquid, structured credit, and real asset strategies and more than 300 employees in its global offices, OHA has generated attractive risk-adjusted returns over its more than 30-year history. OHA's performance, its global institutional client base, and the positive industry backdrop have positioned it to raise $19.4 billion of capital since January 2020.\nScale is increasingly important as a competitive advantage in sourcing financing...