OHA's $17.7B Fund Signals Private Credit's Dominance in Lending

NEW YORK, NY – December 11, 2025 – In a move that cements the ascent of private credit as a dominant force in corporate finance, Oak Hill Advisors (OHA) has announced the final close of a colossal $17.7 billion fund dedicated to senior private lending. The fund, OHA Senior Private Lending Fund (OLEND), represents the firm’s largest flagship fundraise in its more than 30-year history and sends a clear signal about where institutional capital is flowing in a landscape of economic uncertainty.

This landmark fundraise, which includes $8.0 billion in equity commitments, equips OHA with substantial purchasing power to finance large-scale corporate growth and leveraged buyouts, a domain once exclusively controlled by syndicates of traditional investment banks. The fund’s focus on first lien and unitranche loans for companies with over $75 million in EBITDA places it squarely in the upper echelon of the direct lending market, targeting stable, mature businesses primarily in North America.

“OLEND is OHA’s largest flagship fundraise in our history,” said Glenn August, Founder and Chief Executive Officer at OHA, in a statement. “The team is looking forward to seizing on the market opportunity in senior private lending, and we are grateful for our partnership with existing and new investors.”

The Unstoppable Rise of a New Asset Class

OHA’s success with OLEND is not an isolated event but rather the crest of a tidal wave that has been building for over a decade. The global private credit market has exploded from a niche strategy into a nearly $2 trillion asset class, with some projections estimating it could reach $3.5 trillion by 2028. This dramatic growth is fueled by a fundamental realignment of the lending landscape.

Following the 2008 financial crisis, increased regulations and a more conservative risk appetite led traditional banks to retreat from the lucrative but complex world of leveraged lending. This created a significant financing gap that private credit managers, unencumbered by the same capital constraints, eagerly filled. Borrowers, particularly private equity sponsors, quickly embraced these new capital providers for their speed, certainty of execution, and highly flexible, tailored financing solutions—advantages that often outweigh the potentially higher cost of capital.

Today, direct lending’s dominance is undeniable. In 2024, private debt reportedly financed over three-quarters of all global leveraged buyouts. The flexibility of unitranche loans, which combine senior and subordinated debt into a single instrument, has become particularly attractive for streamlining complex transactions, a specialty OHA is now positioned to expand upon.

“OLEND is a natural extension of OHA’s established credit investing platform, which has evolved significantly over recent years to capitalize on the accelerated growth of the private credit market and the attractive relative value of unitranche financings,” noted Alan Schrager, Portfolio Manager and Senior Partner at OHA.

A Strategic Bet on 'Recession-Resistant' Sectors

The appeal of OLEND to a diverse base of global investors—including pension funds, sovereign wealth funds, and insurance companies—lies in its disciplined investment thesis: a focus on what OHA deems “recession-resistant” industries. In an environment marked by slowing global growth and persistent economic uncertainty, this strategy offers a compelling promise of downside protection and stable, predictable returns.

Sectors like healthcare, pharmaceuticals, medical devices, and consumer staples are prime examples of industries that exhibit consistent demand regardless of broader economic cycles. The non-discretionary nature of medical treatments and essential goods provides a reliable cash flow stream for portfolio companies, making them ideal candidates for senior secured debt. For institutional investors with long-term liabilities, the steady income from these floating-rate loans provides both an attractive yield and a hedge against inflation.

This focus is particularly relevant for the healthcare innovation ecosystem. Capital-intensive endeavors, such as late-stage clinical trials, medical device commercialization, or large-scale acquisitions by pharmaceutical giants, require substantial and reliable financing. The availability of a massive capital pool like OLEND provides a powerful alternative to the public markets or traditional bank debt, enabling companies to execute strategic initiatives with greater speed and confidentiality.

Eric Muller, Portfolio Manager and Partner at OHA, commented on this appeal, stating, “We believe OLEND’s breadth of investors reflects the fund’s versatility, as well as the compelling investment opportunity in senior direct lending. We look forward to deploying fund capital with an investment strategy that seeks to deliver consistent returns and create long-term value for our investors.”

The T. Rowe Price Synergy and a Shifting Market

The successful fundraise also validates the strategic vision of T. Rowe Price, the traditional asset management giant that counts OHA as its private markets platform. The move to acquire OHA was part of a broader industry trend where traditional managers are diversifying into alternative investments to meet evolving client demands and capture new growth drivers.

OHA’s success demonstrates the powerful synergy of this model. T. Rowe Price’s vast distribution network and sterling reputation among institutional clients undoubtedly contributed to the fundraising momentum, while OHA provides T. Rowe Price’s clients with access to a high-performing, in-demand asset class that complements traditional equity and bond portfolios.

As the private credit market continues to mature, the scale of funds like OLEND is reshaping the entire corporate finance ecosystem. With nearly $1 trillion in middle-market loans set to mature by 2030, the refinancing opportunity alone is immense. Furthermore, as deal sizes grow, these private credit titans are increasingly competing head-to-head with—and often winning against—the Wall Street syndicates that have long dominated large-cap financing. This capital infusion ensures that the private credit market will remain a primary engine for corporate M&A, innovation, and growth for years to come.