T. Rowe Price OHA Fund Sees 68% Jump in Q2 Net Assets

TL;DR

**T. Rowe Price OHA's private credit fund is crushing it, showing strong growth and making it a solid bet for income-focused investors.**

AI Summary

T. Rowe Price OHA Select Private Credit Fund reported a net increase in net assets from operations of $11,940,300 for the three months ended June 30, 2025, a significant rise from $7,084,000 for the same period in 2024. For the six months ended June 30, 2025, the net increase was $23,439,300, up from $13,766,000 in the prior year. Total investment income for the three months ended June 30, 2025, was $20,388,000, compared to $12,084,000 in 2024, driven by increased interest income. Expenses also increased, reaching $8,447,700 for the three months ended June 30, 2025, from $5,000,000 in 2024, primarily due to higher management fees and incentive fees. The fund's net asset value per share for Class I was $20.00 as of June 30, 2025, up from $19.80 as of December 31, 2024. The fund continues to invest in debt securities, with significant holdings in sectors like Aerospace and Car Wash Services, including investments in Evergreen IX Borrower 2023 LLC and Mammoth Holdings, LLC.

Why It Matters

This strong performance, with a 68% increase in net assets from operations for Q2 2025, signals robust health in the private credit market, which could attract more institutional and retail investors seeking yield outside traditional fixed income. For investors, the consistent growth in net asset value per share, from $19.80 to $20.00 for Class I, suggests effective management and a stable income stream. Employees of T. Rowe Price and OHA benefit from the fund's success, potentially through increased assets under management and performance-based compensation. In a competitive landscape, this positive trend positions T. Rowe Price OHA Select Private Credit Fund favorably against other private credit vehicles, potentially drawing capital away from competitors.

Risk Assessment

Risk Level: low — The fund exhibits a low risk level due to its consistent growth in net assets from operations, increasing from $7,084,000 in Q2 2024 to $11,940,300 in Q2 2025. Furthermore, the net asset value per share for Class I has steadily risen from $19.80 at December 31, 2024, to $20.00 at June 30, 2025, indicating stability and positive returns for shareholders.

Analyst Insight

Investors should consider increasing their allocation to T. Rowe Price OHA Select Private Credit Fund, given its strong Q2 2025 performance with a 68% increase in net assets from operations. The consistent growth in NAV per share and robust investment income suggest a well-managed fund in a favorable market.

Financial Highlights

debt To Equity

N/A

revenue

$20,388,000

operating Margin

58.5%

total Assets

N/A

total Debt

N/A

net Income

$11,940,300

eps

$0.10

gross Margin

N/A

cash Position

N/A

revenue Growth

+68.7%

Revenue Breakdown

Key Numbers

• $11,940,300 — Net increase in net assets from operations (for the three months ended June 30, 2025, up from $7,084,000 in 2024)
• $23,439,300 — Net increase in net assets from operations (for the six months ended June 30, 2025, up from $13,766,000 in 2024)
• $20,388,000 — Total investment income (for the three months ended June 30, 2025, compared to $12,084,000 in 2024)
• $8,447,700 — Total expenses (for the three months ended June 30, 2025, up from $5,000,000 in 2024)
• $20.00 — Net asset value per share (Class I) (as of June 30, 2025, up from $19.80 as of December 31, 2024)
• 68% — Percentage increase in net assets from operations (comparing Q2 2025 to Q2 2024)

Key Players & Entities

• T. Rowe Price OHA Select Private Credit Fund (company) — filer of the 10-Q
• OHA Private Credit Fund LLC (company) — former name of the fund
• Evergreen IX Borrower 2023 LLC (company) — unaffiliated issuer in which the fund invests
• Mammoth Holdings, LLC (company) — unaffiliated issuer in which the fund invests
• Farsound Aviation Limited (company) — unaffiliated issuer in which the fund invests
• Mantech International CP (company) — unaffiliated issuer in which the fund invests
• Peraton Corp. (company) — unaffiliated issuer in which the fund invests
• STS Aviation Group (company) — unaffiliated issuer in which the fund invests
• OAK HILL ADVISORS, L.P. (company) — business and mail address provider
• SEC (regulator) — regulator for 10-Q filings

FAQ

Risk Factors

• Credit Risk of Investments [high — financial]: The fund invests in debt securities, and its performance is subject to the creditworthiness of the issuers. Defaults or downgrades in its portfolio, which includes companies like Evergreen IX Borrower 2023 LLC and Mammoth Holdings, LLC, could lead to significant losses.
• Interest Rate Sensitivity [medium — market]: As a private credit fund, its investments are sensitive to changes in interest rates. Fluctuations in market interest rates can impact the value of its debt holdings and the income generated.
• Reliance on Investment Manager [medium — operational]: The fund's success is heavily dependent on the expertise and performance of T. Rowe Price and Oak Hill Advisors. Any adverse changes in their management or strategy could negatively impact the fund.
• Regulatory Changes [low — regulatory]: Changes in regulations affecting private credit funds, investment advisers, or the financial markets in general could impact the fund's operations, compliance, and profitability.

Industry Context

The private credit market continues to be a significant source of financing for companies, offering an alternative to traditional bank lending. T. Rowe Price OHA Select Private Credit Fund operates within this dynamic space, focusing on direct lending to middle-market companies. The sector is characterized by increasing competition, evolving regulatory scrutiny, and a demand for specialized expertise in credit analysis and portfolio management.

Regulatory Implications

As a registered investment company, the fund is subject to regulations under the Investment Company Act of 1940 and other securities laws. Changes in these regulations, particularly those pertaining to private funds and credit markets, could impact operational requirements and investment strategies.

What Investors Should Do

1. Monitor expense ratios and fee structures.
2. Review portfolio concentration and credit quality.
3. Evaluate the impact of interest rate changes.

Key Dates

• 2025-06-30: Quarterly Report Filing (10-Q) — Provides updated financial performance and portfolio details for the period ending June 30, 2025.
• 2025-06-30: Net Asset Value per Share (Class I) — Reported at $20.00, indicating growth from $19.80 at the end of the previous year.
• 2025-06-30: Net Increase in Net Assets from Operations (Q2) — Reported at $11,940,300, a significant increase from $7,084,000 in Q2 2024.
• 2025-06-30: Total Investment Income (Q2) — Reached $20,388,000, up from $12,084,000 in Q2 2024, driven by interest income.
• 2025-06-30: Total Expenses (Q2) — Increased to $8,447,700 from $5,000,000 in Q2 2024, due to higher management and incentive fees.

Glossary

Net increase in net assets from operations

The total profit or loss generated by the fund's core business activities during a specific period. (Key indicator of the fund's profitability and growth from its investment activities.)

Investment Income

Revenue generated from the fund's investments, primarily interest earned on debt securities in this case. (Directly reflects the earning potential of the fund's portfolio.)

Net Asset Value (NAV) per Share

The value of each share of the fund, calculated by dividing the total value of the fund's assets minus its liabilities by the number of outstanding shares. (Measures the per-share value of the fund and indicates its overall performance and growth.)

Debt Securities

Financial instruments representing a loan made by an investor to a borrower (typically corporate or governmental). (The primary asset class for this private credit fund.)

Aerospace Sector

An industry segment involved in the design, development, manufacturing, and maintenance of aircraft, spacecraft, and related components. (Identifies a key sector where the fund has made significant debt investments.)

Year-Over-Year Comparison

The T. Rowe Price OHA Select Private Credit Fund has demonstrated robust growth in its latest filing. Net increase in net assets from operations for the three months ended June 30, 2025, surged by approximately 68.7% to $11,940,300 compared to the same period in 2024. This growth was primarily fueled by a substantial increase in total investment income, which rose by over 68% to $20,388,000, largely due to higher interest income. However, total expenses also saw a significant rise of nearly 69% to $8,447,700, driven by increased management and incentive fees, which investors should monitor.

Filing Details

This Form 10-Q (Form 10-Q) was filed with the SEC on August 6, 2025 regarding T. Rowe Price OHA Select Private Credit Fund.

View full filing on EDGAR

View Full Filing

View this 10-Q filing on SEC EDGAR