Oak Hill Advisors is opening its private credit strategies to retail investors with the launch of a new interval fund, OFLEX, aimed at deploying capital across public and private debt markets, according to a report by Bloomberg.
The move comes amid heightened investor caution in the $1.8tn private credit sector.
The fund will target a broad spectrum of credit opportunities, including direct lending, asset-backed finance, collateralised loan obligations, public credit, and special situations. Investors will be able to buy in daily, with quarterly redemption rights of at least 5% of net assets.
CEO Glenn August said the firm sees the fund as a way to give individual investors access to strategies historically reserved for institutional clients, including pension funds. He highlighted the current market dislocations as an attractive entry point, with asset prices more favourable than six months ago.
The fund launch reflects a broader trend of private capital firms reaching out to retail investors, even as the sector grapples with redemption pressures, valuation scrutiny, and sector-specific risks, such as exposure to heavily indebted software companies. August emphasised that redemption limits, like the 5% quarterly cap in OFLEX, help managers invest confidently in illiquid assets while preserving long-term returns.
