T. Rowe Price OHA Fund Sees Q3 Income Jump Amid Portfolio Expansion

TL;DR

**T. Rowe Price OHA's private credit fund is growing fast, but watch those rising interest expenses and unrealized losses – it's a mixed bag for now.**

AI Summary

T. Rowe Price OHA Select Private Credit Fund reported a net increase in net assets from operations of $39.601 million for the three months ended September 30, 2025, up from $26.283 million in the prior year period. For the nine months ended September 30, 2025, net assets from operations decreased slightly to $76.830 million from $77.213 million in 2024. Total investment income rose to $68.320 million for the three-month period in 2025, compared to $56.480 million in 2024, driven by an increase in interest and dividend income to $65.201 million. Expenses also increased, with interest and debt fee expense reaching $20.763 million for the quarter, up from $16.363 million. The fund saw significant growth in its investment portfolio, with non-controlled/non-affiliated investments at fair value increasing to $2,675,904 thousand as of September 30, 2025, from $2,053,427 thousand at December 31, 2024. Total net assets grew to $1,501,124 thousand from $1,200,629 thousand over the same period, reflecting substantial share issuance, including $124,816 thousand from Class D shares sold in the nine months ended September 30, 2025. The fund experienced a net realized and unrealized loss of $21.702 million for the nine months ended September 30, 2025, primarily due to unrealized depreciation on investments.

Why It Matters

This report indicates robust growth in T. Rowe Price OHA Select Private Credit Fund's asset base and investment income, which is positive for existing investors. The significant increase in debt and corresponding interest expenses, however, warrants close attention as it could impact future profitability and distributions. The competitive landscape for private credit remains intense, and the fund's ability to generate consistent net investment income despite rising costs will be a key differentiator. For employees, continued fund growth could signal stability and expansion opportunities, while customers benefit from a larger, potentially more diversified private credit offering. The broader market will watch how this fund navigates interest rate environments and credit quality in its expanding portfolio.

Risk Assessment

Risk Level: medium — The fund's risk level is medium due to a significant net change in unrealized depreciation on non-controlled/non-affiliated investments, totaling $(13,501) thousand for the nine months ended September 30, 2025. This indicates potential volatility in asset valuations. Additionally, the fund's debt increased to $1,200,679 thousand from $913,053 thousand, leading to higher interest and debt fee expenses of $58,689 thousand, which could strain future net investment income if not managed effectively.

Analyst Insight

Investors should closely monitor the fund's credit quality and the performance of its underlying private credit investments, especially given the significant unrealized depreciation. Evaluate the impact of rising interest rates on the fund's debt servicing costs and its ability to maintain attractive distributions. Consider the fund's long-term strategy for managing its growing debt load and potential credit risks in its expanding portfolio.

Financial Highlights

debt To Equity

0.80

revenue

$68,320K

operating Margin

N/A

total Assets

$2,759,432K

total Debt

$1,200,679K

net Income

$39,601K

eps

N/A

gross Margin

N/A

cash Position

$47,045K

revenue Growth

+20.9%

Revenue Breakdown

Key Numbers

• $39.601M — Net increase in net assets from operations (for the three months ended September 30, 2025, up from $26.283M in 2024)
• $76.830M — Net increase in net assets from operations (for the nine months ended September 30, 2025, down from $77.213M in 2024)
• $68.320M — Total investment income (for the three months ended September 30, 2025, up from $56.480M in 2024)
• $2,675,904K — Investments at fair value (as of September 30, 2025, up from $2,053,427K at December 31, 2024)
• $1,501,124K — Total net assets (as of September 30, 2025, up from $1,200,629K at December 31, 2024)
• $1,200,679K — Debt (net) (as of September 30, 2025, up from $913,053K at December 31, 2024)
• $58,689K — Interest and debt fee expense (for the nine months ended September 30, 2025, up from $41,049K in 2024)
• $(13,501)K — Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated investments (for the nine months ended September 30, 2025)
• $124,816K — Proceeds from Class D shares sold (for the nine months ended September 30, 2025)
• 55,723,978 — Common shares outstanding (as of September 30, 2025, up from 43,472,573 at December 31, 2024)

Key Players & Entities

• T. Rowe Price OHA Select Private Credit Fund (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• OHA (company) — part of fund name
• Bloomberg (company) — publisher
• Delaware (company) — State of Incorporation
• New York (company) — Principal Executive Offices
• Vanderbilt (company) — Address of Principal Executive Offices
• Private Securities Litigation Reform Act of 1995 (regulator) — Act related to forward-looking statements

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: The fund's investments are primarily in floating-rate loans, making it sensitive to changes in interest rates. While rising rates can increase income, significant or rapid increases could impact borrower repayment capacity and investment valuations.
• Valuation of Private Investments [high — market]: The fair value of non-controlled/non-affiliated investments is determined by management and may be subjective. A net realized and unrealized loss of $21,702K was recorded for the nine months ended September 30, 2025, primarily due to unrealized depreciation, indicating potential valuation challenges.
• Leverage Risk [high — financial]: The fund utilizes debt financing, with total debt increasing to $1,200,679K as of September 30, 2025, from $913,053K at December 31, 2024. Increased leverage amplifies both potential gains and losses, and higher debt service costs can pressure net income.
• Dependence on Investment Manager [medium — operational]: The fund's success is heavily reliant on the expertise of T. Rowe Price and OHA Investment Management LLC in sourcing, managing, and valuing private credit investments. Any disruption or underperformance by the investment manager could negatively impact the fund.
• Liquidity Risk of Private Investments [medium — market]: Private credit investments are generally illiquid, making them difficult to sell quickly at a fair price. This illiquidity can be exacerbated during periods of market stress, potentially impacting the fund's ability to meet redemption requests.

Industry Context

The private credit market continues to attract significant investor interest due to its potential for attractive yields and diversification benefits. However, it faces increasing competition from traditional lenders and other alternative asset managers. Trends include a focus on direct lending, opportunistic strategies, and the impact of rising interest rates on portfolio performance and borrower creditworthiness.

Regulatory Implications

As a registered investment company, the fund is subject to regulations under the Investment Company Act of 1940, including rules on disclosure, leverage, and asset coverage. Changes in accounting standards or regulatory interpretations could impact reporting and operations.

What Investors Should Do

1. Monitor portfolio valuation changes closely.
2. Assess the impact of leverage on risk and return.
3. Evaluate the growth in investment income against rising expenses.
4. Consider the implications of share issuance on NAV per share.

Key Dates

• 2025-09-30: Quarterly Report Filing (10-Q) — Provides updated financial performance, asset valuations, and operational details for the period ending September 30, 2025.
• 2025-09-30: End of Third Quarter — Reporting period for the latest financial results, showing a net increase in net assets from operations of $39.601 million.
• 2024-12-31: Year-End Financial Statement Date — Provides a baseline for comparison of asset growth and net asset value changes.

Glossary

Non-controlled/non-affiliated investments

Investments in companies where the fund does not have a controlling interest or affiliation, typically valued at fair value. (Represents the core investment portfolio of the fund, with a significant increase to $2,675,904K as of September 30, 2025.)

Distributable earnings (loss)

The accumulated net income, net realized gains/losses, and net unrealized appreciation/depreciation of the fund, less distributions paid. (Indicates the fund's cumulative profitability available for distribution, showing a loss of $28,952K as of September 30, 2025.)

Net asset value per share

The value of each share of the fund, calculated by dividing the total net assets by the number of outstanding shares. (Key metric for investors to track the performance of their investment; remained stable at $26.94 across share classes as of September 30, 2025.)

Unrealized depreciation

A decrease in the fair value of an investment that has not yet been sold. (A primary driver of the net realized and unrealized loss of $21,702K for the nine months ended September 30, 2025.)

Year-Over-Year Comparison

Compared to the prior year period, the T. Rowe Price OHA Select Private Credit Fund shows a strong increase in net assets from operations for the three months ended September 30, 2025 ($39.6M vs $26.3M), driven by higher investment income ($68.3M vs $56.5M). However, for the nine-month period, net assets from operations saw a slight decrease ($76.8M vs $77.2M). Expenses, particularly interest and debt fees, have also risen significantly, reflecting increased leverage and a larger debt burden. The investment portfolio has grown substantially, but this growth was accompanied by a notable net realized and unrealized loss of $21.7M, primarily due to unrealized depreciation, indicating increased market risk.

Filing Documents

• oha-20250930.htm (10-Q) — 6307KB
• exhibit311_ocreditxceosec3.htm (EX-31.1) — 11KB
• exhibit312_ocreditxcfosec3.htm (EX-31.2) — 10KB
• exhibit321_ocreditxceosec9.htm (EX-32.1) — 6KB
• exhibit322_ocreditxcfosec9.htm (EX-32.2) — 6KB
• 0001901164-25-000016.txt ( ) — 26480KB
• oha-20250930.xsd (EX-101.SCH) — 66KB
• oha-20250930_cal.xml (EX-101.CAL) — 85KB
• oha-20250930_def.xml (EX-101.DEF) — 474KB
• oha-20250930_lab.xml (EX-101.LAB) — 730KB
• oha-20250930_pre.xml (EX-101.PRE) — 601KB
• oha-20250930_htm.xml (XML) — 7161KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 40 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 78 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 105 Item 4.

Controls and Procedures

Controls and Procedures 105 PART II OTHER INFORMATION 106 Item 1.

Legal Proceedings

Legal Proceedings 106 Item 1A.

Risk Factors

Risk Factors 106 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 106 Item 3. Defaults Upon Senior Securities 107 Item 4. Mine Safety Disclosures 107 Item 5. Other Information 107 Item 6. Exhibits 107

Signatures

Signatures 110 3 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Some of the statements in this Quarterly Report on Form 10-Q constitute forward-looking statements because they relate to future events or our future performance or financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about T. Rowe Price OHA Select Private Credit Fund (the "Company," "we," "us" or "our"), our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Forward-looking statements may include, among other things, statements as to our future operating results, our business prospects and the prospects of our portfolio companies, the impact of the investments that we expect to make, the ability of our portfolio companies to achieve their objectives, our expected financings and investments, the adequacy of our cash resources and working capital, and the timing of cash flows, if any, from the operations of our portfolio companies. Words such as "expect," "anticipate," "target," "goals," "project," "intend," "plan," "believe," "seek," "estimate," "continue," "forecast," "may," "will," "would," "should," "potential," variations of such words, and similar expressions indicate a forward-looking statement, although not all forward-looking statements include these words. Readers are cautioned that the forward-looking statements contained in this Quarterly Report on Form 10-Q are only predictions, are not guarantees of future performance, and are subject to risks, events, uncertainties and assumptions that are difficult to predict. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the items discussed in Item 1A entitled "Risk Factors" in Part II of this Quarterly Report on Form 10-Q and in Item 1A entitled "Risk Factors" in Part I of our Annual Report on F

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements T. Rowe Price OHA Select Private Credit Fund Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) As of As of September 30, 2025 December 31, 2024 ASSETS (Unaudited) Investments at fair value: Non-controlled/non-affiliated investments (cost of $ 2,687,435 and $ 2,051,457 at September 30, 2025 and December 31, 2024, respectively) $ 2,675,904 $ 2,053,427 Cash, cash equivalents and restricted cash 47,045 62,157 Interest receivable 20,608 26,679 Deferred financing costs 10,051 8,557 Deferred offering costs — 220 Receivable for investments sold 45 9,890 Derivative assets, at fair value (Note 5) 5,779 790 Total assets $ 2,759,432 $ 2,161,720 LIABILITIES Debt (net of unamortized debt issuance costs of $ 2,549 and $ 3,093 , at September 30, 2025 and December 31, 2024, respectively) $ 1,200,679 $ 913,053 Payable for investments purchased 18,084 82 Interest and debt fee payable 9,401 21,969 Distribution payable 12,713 14,313 Management fee payable 4,460 3,494 Income incentive fee payable 5,129 4,478 Distribution and/or shareholder servicing fees payable 102 33 Due to counterparty 4,210 — Accrued expenses and other liabilities 3,530 3,669 Total liabilities $ 1,258,308 $ 961,091 Commitments and contingencies (Note 9) NET ASSETS Common shares, $ 0.01 par value ( 55,723,978 and 43,472,573 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively) $ 557 $ 435 Additional paid in capital 1,529,519 1,197,185 Distributable earnings (loss) ( 28,952 ) 3,009 Total net assets $ 1,501,124 $ 1,200,629 Total liabilities and net assets $ 2,759,432 $ 2,161,720 See accompanying notes to consolidated financial statements. 5 T. Rowe Price OHA Select Private Credit Fund Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) As of As of September 30, 2025 December 31, 2024 NET A

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