HedgeCo.Net — T. Rowe Price OHA Select Private Credit Fund, the non-traded BDC known as OCREDIT, reported second-quarter results Thursday that split the wealth-channel private-credit story in two: net investment income of $0.61 per share still covered a $0.60 quarterly distribution, but net asset value fell to $25.96 from $26.15 at March 31 and $26.89 at year-end 2025. For allocators who have used BDCs and other ’40 Act vehicles as the liquid-ish on-ramp into direct lending, that combination — income intact, marks softer — is the number that matters more than the distribution headline.
The portfolio grew. Fair value of investments rose to $3.10 billion from $2.98 billion, spanning 144 companies in 25 sectors, after $176.1 million of gross fundings and $124.0 million of net investment activity, including $114.7 million into seven new names. First-lien loans were 90.8% of fair value; 97% of debt investments were floating-rate; weighted-average yield on debt and income-producing investments was 9.8% at amortized cost; and debt-to-equity held at 0.93x with $1.52 billion of net debt at a 6.0% weighted-average interest rate. Inception-to-date annualized total return since November 14, 2022, was 10.58%. Those are still the statistics a consultant puts on a page. They sit next to a different set: earnings per share of $0.41, a $13.2 million net unrealized depreciation in the quarter and $56.0 million over six months, and one debt investment on non-accrual with $29.4 million of cost and $16.0 million of fair value.
Subsequent to quarter-end, OCREDIT issued $400 million of notes due July 2, 2031, at a fixed 6.50%. That takeout of floating liability into five-year fixed paper is a duration and match-funding decision, not a growth flourish. It also tells LPs where the cost of term capital sits for a large-borrower, senior-secured BDC: 6.50% unsecured against a 9.8% portfolio yield at cost. The spread is still there. It is narrower than the marketing decks of 2022 implied, and it has to absorb the mark-to-market noise that took NAV from $26.89 at year-end 2025 to $25.96.
Second-order, OCREDIT is a window into the wealth-channel private-credit complex that has been absorbing redemption pressure elsewhere in non-traded BDCs. The vehicle still raised money in the quarter — $13.3 million of Class I, $5.2 million of Class S, and $13.9 million of Class D — and another $14.8 million from July 1 through August 13. That is not a run on the fund. It is also not the open-ended inflows that built the sleeve. Oak Hill Advisors, T. Rowe Price’s private-markets credit platform, reported about $112 billion of AUM as of June 30. Institutional LPs who own OHA drawdown funds and wealth platforms that own OCREDIT are now looking at the same credit cycle through different wrappers. The Q2 print says income can still pay the coupon. It does not say the marks have stopped drifting. That is the distinction gated retail vehicles and unlevered drawdown funds will live with for the rest of the year.