– Oak Hill Advisors (OHA), a global credit-focused alternative asset manager, announced the final close of OHA CLO Enhanced Equity Fund III (OHCEE III) with $1.1 billion in total equity commitments.
– These commitments will allow OHA to deploy approximately $10 billion in CLOs.
– OHCEE III invests in the primary equity of OHA-managed CLOs, leveraging the firm’s structured credit expertise.
– The fund attracted a global investor base, including pension funds, sovereign wealth funds, corporations, endowments, and family offices.
– OHCEE III builds on the success of predecessor funds OHCEE I and II.
– OHCEE I ended its investment period in 2021 and is returning capital to investors.
– OHCEE II will continue investing until December 2025.
– Harpreet Anand, Portfolio Manager and Partner at OHA, highlighted OHCEE III’s disciplined CLO equity approach, emphasizing capital preservation, long-term value creation, and outperformance across market environments.
– TK Narayan, Head of Corporate Structured Products and Partner at OHA, noted the fund utilizes OHA’s high-conviction credit selection and portfolio construction approach, supported by decades of experience.
– OHA has been active in the CLO market since 2001, issuing its first CLO.
– OHCEE III extends OHA’s legacy through deep analytics, disciplined investing, active portfolio management, and rigorous structuring expertise.
– The fund dynamically invests the asset side of CLOs to mitigate credit losses and manages the liability side to optimize returns.
– With OHCEE III, OHA manages over $22 billion in CLO-related assets across multiple strategies.
– Thomas Wong, Portfolio Manager and Partner at OHA, emphasized the CLO equity market offers compelling opportunities for managers who navigate complexity and manage risk effectively.
– OHCEE III aims to generate alpha and deliver attractive, risk-adjusted returns for investors.
