T. Rowe Price OHA Select Private Credit Fund Reports Strong Q4 2025 Financial Results
On March 12, 2026, the T. Rowe Price OHA Select Private Credit Fund (known as OCREDIT) announced its financial outcomes for the quarter ending December 31, 2025. The fund reported an impressive total distribution of $0.69 per share for the fourth quarter. OCREDIT's performance exemplifies the ongoing significance of private credit within the realm of financial solutions in credit markets. The fourth quarter brought the addition of 16 new companies to its portfolio, resulting in a net growth of nearly $210.1 million. With this development, OCREDIT has established an investment portfolio valued at approximately $2.9 billion, diversifying its investment across 135 companies and 22 sectors, while maintaining a weighted average portfolio yield of 10.0%. Eric Muller, the Chief Executive Officer of OCREDIT, emphasized the importance of steadfast underwriting, quality portfolio management, and risk assessment as they navigate a market characterized by volatility and change. He remarked, 'Private credit remains a key asset for investors, underpinned by rigorous credit selection, robust structural protections, and direct interaction with borrowers. These elements fortify the asset class's ability to navigate uncertain periods.'
1. Annualized Total Return: Since inception, OCREDIT has delivered an annualized total return of 11.87%.
2. Net Investment Income: For Q4 2025, the net investment income per share was reported at $0.65, with an earnings per share figure of $0.63.
3. Distribution Yield: The declared distributions for the quarter resulted in a dividend yield of 10.3%.
4. Net Asset Value (NAV): As of December 31, 2025, OCREDIT's net asset value per share stood at $26.89.
5. Investment Fundings: The fund reported gross investments of $464.6 million during the quarter, complemented by a debt-to-equity ratio of 0.90x—as compared to 0.80x in the preceding quarter.
6. Despite the growth, OCREDIT faces challenges. The total net debt outstanding as of the end of December 2025 was approximately $1.44 billion, with an interest rate averaging 6.5%. Investment activity during Q4 included significant primary fundings aimed at strengthening its portfolio, which consists mainly of first-lien loans that constitute about 90.4% of total investments. The fund also strategically managed its liabilities, navigating dynamic market scenarios.
OCREDIT made notable moves in January 2026, declaring a regular distribution of $0.20 per share along with a variable supplemental distribution of $0.03 per share, bringing the total to $0.23 per share. This was followed by similar announcements later in February 2026, indicating a continued commitment to providing value to shareholders. The fund encourages investors to review its investment strategies amid potential risks associated with private lending, highlighting that while private credit investments bear considerable benefits, they also pose a higher risk of defaults and liquidity challenges. OCREDIT operates within a tightly regulated environment as a closed-end management investment company, allowed to pursue private credit investments under the provisions of the Investment Company Act of 1940. Stakeholders can access a wealth of information through OCREDIT's website for updated financial reports and further insights into the fund’s operations.
In conclusion, OCREDIT reflects resilience in today’s competitive credit markets, continually adapting its strategies to harness the ever-changing economic landscape. As T. Rowe Price enhances its footprint in the private credit domain, industry observers will be keen to monitor how it leverages its robust asset management capabilities to generate sustainable, risk-adjusted returns for its investors and stakeholders.
Financial Highlights
1. Annualized Total Return: Since inception, OCREDIT has delivered an annualized total return of 11.87%.
2. Net Investment Income: For Q4 2025, the net investment income per share was reported at $0.65, with an earnings per share figure of $0.63.
3. Distribution Yield: The declared distributions for the quarter resulted in a dividend yield of 10.3%.
4. Net Asset Value (NAV): As of December 31, 2025, OCREDIT's net asset value per share stood at $26.89.
5. Investment Fundings: The fund reported gross investments of $464.6 million during the quarter, complemented by a debt-to-equity ratio of 0.90x—as compared to 0.80x in the preceding quarter.
6. Despite the growth, OCREDIT faces challenges. The total net debt outstanding as of the end of December 2025 was approximately $1.44 billion, with an interest rate averaging 6.5%. Investment activity during Q4 included significant primary fundings aimed at strengthening its portfolio, which consists mainly of first-lien loans that constitute about 90.4% of total investments. The fund also strategically managed its liabilities, navigating dynamic market scenarios.
Recent Developments
OCREDIT made notable moves in January 2026, declaring a regular distribution of $0.20 per share along with a variable supplemental distribution of $0.03 per share, bringing the total to $0.23 per share. This was followed by similar announcements later in February 2026, indicating a continued commitment to providing value to shareholders. The fund encourages investors to review its investment strategies amid potential risks associated with private lending, highlighting that while private credit investments bear considerable benefits, they also pose a higher risk of defaults and liquidity challenges. OCREDIT operates within a tightly regulated environment as a closed-end management investment company, allowed to pursue private credit investments under the provisions of the Investment Company Act of 1940. Stakeholders can access a wealth of information through OCREDIT's website for updated financial reports and further insights into the fund’s operations.
In conclusion, OCREDIT reflects resilience in today’s competitive credit markets, continually adapting its strategies to harness the ever-changing economic landscape. As T. Rowe Price enhances its footprint in the private credit domain, industry observers will be keen to monitor how it leverages its robust asset management capabilities to generate sustainable, risk-adjusted returns for its investors and stakeholders.
Topics Financial Services & Investing）
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