T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — T. Rowe Price OHA Select Private Credit Fund (OCREDIT) — Investor Presentation (December 2024)
32 slides from T. Rowe Price's investor presentation, December 2024
Slide 1: T. Rowe Price OHA Select Private Credit Fund (OCREDIT)
T. Rowe Price OHA Select Private Credit Fund (OCREDIT) 4Q 2024
Slide 2: Introducing T. Rowe Price OHA Select Private Credit Fund (OCREDIT)
Introducing T. Rowe Price OHA Select Private Credit Fund (OCREDIT) 2
Slide 3: Introducing OCREDIT
Introducing OCREDIT OCREDIT is a Non-traded Perpetual Business Development Company (BDC) T. Rowe Price OHA Select Private Credit Fund (“OCREDIT”) delivers OHA’s knowledge and experience in an institutional-quality(1) private credit solution for income-focused investors that is designed to provide(2)
Slide 4: Introducing OHA
Introducing OHA OHA is a Leading Global Alternative Credit Investment Specialist OHA has a depth of experience providing financing solutions in private and public markets(1) (3) Trusted advisor to many of the world’s largest $71 B Total Current and most sophisticated investors Capital Under ■ Deep r
Slide 5: Why Private Credit?
T.RowePrice Why Private Credit?
Slide 6: Key Asset Features
Why Private Credit? Key Asset Features Private credit typically refers to loans directly originated and negotiated between a borrower and the lender or a small group of lenders, such as OHA, instead of an intermediary bank Private credit can offer several attractive investment characteristics Potent
Slide 7: Potential Advantages to Investors of Private Credit
Why Private Credit? Potential Advantages to Investors of Private Credit ■ Allocating to private credit may increase potential returns while lowering volatility ■ Private credit has generated positive returns in prior periods when investors faced weaker equity markets and higher interest rates — as e
Slide 8: Demand for Private Financings from Borrowers Continues to Grow
Why Private Credit? Demand for Private Financings from Borrowers Continues to Grow ■ Private financing solutions offer borrowers several advantages Borrower Benefits of Private Solutions vs. Traditional Markets Partnership Execution with lender Efficiency Private Certainty of Confidentiality Credit
Slide 9: Bank Retrenchment Transformed Financing Markets
Why Private Credit? Bank Retrenchment Transformed Financing Markets ■ Structural change has resulted in more constrained and fragile syndicated markets ■ Private lending evolved into a reliable financing source through environments, including periods of market turbulence Opportunities for Non-Bank L
Slide 10: Private Credit Market Share Has Grown in a Growing Market
Why Private Credit? Private Credit Market Share Has Grown in a Growing Market ■ Private credit grew to 18% of the global leveraged finance market, with significant capacity to expand ■ The leveraged finance market has grown by 150% over the same time period ■ Larger borrowers increasingly seek priva
Slide 11: Attractive Potential Returns
Why Private Credit? Attractive Potential Returns ■ Potential returns increased meaningfully driven by higher rates and repricing of risk (spread and OID(1)) Illustrative Unitranche Pricing Original Issue Discount $98 - 99 Spread 4.75% - 5.25% Original Issue Discount $97 - 99 Spread 5.0% - 5.5% 4.6%
Slide 12: Why OCREDIT?
Why OCREDIT? T.RowePrice 12
Slide 13: Access to OHA's Private Credit through a Retail Investor Focused Structure
Why OCREDIT? Access to OHA’s Private Credit through a Retail Investor Focused Structure Combines OHA’s institutional-quality(1) private credit strategy with a retail investor focused structure Institutional-Quality(1) Private Credit Access Traditionally reserved for OHA’s institutional investors, OC
Slide 14: OHA Edge: Proven and Consistent Capabilities and Approach
Why OCREDIT? OHA Edge: Proven and Consistent Capabilities and Approach Time-tested and differentiated approach designed to capitalize on growing private credit opportunity Trusted Partner Companies and private equity sponsors value OHA’s expertise, independence and reliability which Relationship enh
Slide 15: Highly Disciplined and Consistent Investment Approach
Why OCREDIT? Highly Disciplined and Consistent Investment Approach OHA has developed a consistent, highly selective investment process that harnesses the firm’s full capabilities across: Sourcing Due Diligence Execution • Investment activity of $71 B Capital • Deep, fundamental “private equity- • Ca
Slide 16: Highly Experienced Team Leverages Industry-Specialist Model
Why OCREDIT? Highly Experienced Team Leverages Industry-Specialist Model OCREDIT Investment Committee Glenn August Alan Schrager Eric Muller Thomas Wong Harpreet Anand Founder & OHA Chief Portfolio Manager & Portfolio Manager & Portfolio Manager & Portfolio Manager & Executive Officer Senior Partner
Slide 17: OHA is a Leading Private Credit Investor
Why OCREDIT? OHA is a Leading Private Credit Investor OHA has built a meaningful market position in private credit since 2002 ■ Growth in OHA’s private lending Private Credit Invested Capital Since Inception business reflects increasing demand for private solutions from larger corporations ■ OHA has
Slide 18: OCREDIT Target Portfolio
Why OCREDIT? OCREDIT Target Portfolio OCREDIT invests in a diversified portfolio of senior secured, privately originated loans to established companies Directly Originated Private Investment Target Profile • Larger corporations with $1 B + enterprise value Borrower Profile • Market leading, typicall
Slide 19: Why OCREDIT Now? The Right Strategy at the Right Time
Why OCREDIT? Why OCREDIT Now? The Right Strategy at the Right Time Aims to be an • Strategy designed to generate premium yields in different market environments institutional quality(1) • Originating customized private financing solutions for select borrowers structured with “all-weather”(2) private
Slide 20: Fund Terms Provide Accessibility and Convenience
Why OCREDIT? Fund Terms Provide Accessibility and Convenience Structure • SEC registered non-exchange listed business development company (BDC)(1) Registered Offering • $2.5 B initial registration Subscriptions • Monthly subscriptions at monthly NAV Distributions • Monthly Expected Liquidity(2) • Qu
Slide 21: OCREDIT Positioning & Performance
OCREDIT Positioning & Performance 21
Slide 22: Portfolio Summary – As of September 30, 2024
OCREDIT Positioning & Performance Portfolio Summary – As of September 30, 2024 $1.9 B $254 M ~ 5.1 yrs Fair Value of Investments Avg. Company EBITDA(1) Avg. Time to Maturity(1) 100% 100% 44% Floating Rate Senior Secured Avg. Loan-to-Value(1) Sector Breakdown(2) Asset Types Second Lien 5% Equity Inve
Slide 23: Top Positions – As of September 30, 2024
OCREDIT Positioning & Performance Top 10 Positions – As of September 30, 2024 % of Portfolio by Company Name Sector Asset Type Spread Market Value(1) NCWS Intermediate, Inc. Automobile First Lien SOFR + 5.50% 3.1% Speed Midco 3 S.a r.l. Services: Business First Lien SOFR + 4.95% 3.0% CPI Holdco, LLC
Slide 24: Case Studies
OCREDIT Positioning & Performance Case Studies Leading global provider of maintenance & operations (M&O) software, enabling frontline workers in asset intensive Leading fire protection engineering and industries to support and manage their consulting firm infrastructure footprint. Issuance Overview(
Slide 25: Historical Performance – As of November 30, 2024
OCREDIT Positioning & Performance Historical Performance – As of November 30, 2024 10.0% 9.1% Class I Annualized Class S Annualized Distribution Rate(1) Distribution Rate(1) Net Total Returns(3) (%) 1 Month 3 Month YTD 1-YR ITD(2) Class I 0.72% 2.38% 10.28% 12.34% 13.83% Class S (No upfront placemen
Slide 26: Historical Performance – Monthly Net Total Returns
OCREDIT Positioning & Performance Historical Performance – As of November 30, 2024 Monthly Net Total Returns(1) (%) 2024 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Class I 1.25 1.18 1.20 0.82 0.57 0.99 0.64 0.82 1.00 0.65 0.72 Class S (No upfront placement fee) 0.50 0.92 0.57 0.75 0.93 0.57 0.
Slide 27: Historical Distributions
OCREDIT Positioning & Performance Historical Performance – As of November 30, 2024 Historical Distributions(1) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Regular Distribution $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20 Variable Distribution $0.03 $0.03 $0.03 $0.03 $
Slide 28: Endnotes
Endnotes Page 3 – OCREDIT is a Non-traded Perpetual Business Development Company (BDC) A fundamental risk associated with OCREDIT’s investment strategy is that the companies whose debt OCREDIT invests will be unable to make regular payments when due, or at all, or otherwise fail to perform. Portfoli
Slide 29: Endnotes (continued)
Endnotes Page 6 – Key Asset Features (continued) • The Value of Certain Portfolio Investments May Not be Readily Determinable. Many of the Fund’s portfolio investments will take the form of securities that are not publicly traded. The fair value of loans, securities and other investments that are no
Slide 30: Key Risks and Disclosures
Key Risks & Disclosures Key Risks and Disclosures The T. Rowe Price OHA Select Private Credit Fund (“OCREDIT”) is a non-exchange traded business development company (“BDC”) that expects to invest at least 80% of its total assets (net assets plus borrowings for investment purposes) in private credit
Slide 31: Additional Disclosure Information
Key Risks & Disclosures Additional Disclosure Information This material was not created by any third-party registered broker-dealers or investment advisers who are distributing shares of OCREDIT (each, a “Dealer”). The Dealers are not affiliated with OCREDIT and have not prepared the material or the
Slide 32: Key Risks & Disclosures
Key Risks & Disclosures OCREDIT is “non-diversified,” meaning it may invest a greater portion of its assets in a single company. OCREDIT’s share price can be expected to fluctuate more than that of a comparable diversified fund. OCREDIT may invest in derivatives, which may be riskier or more volatil