(Bloomberg) — Large traditional fund managers are finding that capitalizing on the boom will take time to set up private credit funds for retail investors.
“This is a very competitive market for private credit in the wealth pipeline,” T. Rowe Price Group Inc. Chief Executive Officer Rob Sharps told analysts on a fourth-quarter earnings call Thursday. In Performance achieve differentiation. “
Sharps said T. Rowe is in the “early stages” of rolling out its OCREDIT Private Credit Fund to wealth management clients, which it launched in October. T. Rowe is one of a number of large fund managers seeking to compete in the fast-growing private credit and alternative asset markets.
read more: T. Rowe and Oak Hill launch private credit fund for mass affluent individuals
T. Rowe, which had $1.4 trillion in client assets as of the end of December and has historically offered actively managed stock and bond funds, acquired Oak Hill Advisors in 2021 to expand into alternative assets. The private credit fund has initial capital of $1.5 billion, including $600 million in equity from T. Rowe and institutional investors.
The fund has raised $100 million since the end of September, and the company expects to raise a similar amount in the first quarter, Sharps said. It seeks to expand to additional advisor and brokerage platforms throughout the year.
T. Rowe said in the financial report that the company was hit by a period of net cash outflows, with a net outflow of $28 billion in customer funds in the fourth quarter and a net outflow of $82 billion in 2023. statement. Shapps said he expected better investment performance this year to help improve financial flows.
The stock was up 0.3% at $110 at 10:39 a.m. trading in New York.
