Oak Hill Advisors closes $1.1 bln CLO equity fund, deploys $10 bln.

Oak Hill Advisors has closed its OHA CLO Enhanced Equity Fund III with $1.1 billion in commitments. The fund will deploy approximately $10 billion in CLOs and attracted investors from a global base, including pension funds, sovereign wealth funds, corporations, endowments, and family offices. The fund aims to leverage the firm's expertise in structured credit and build on the success of its predecessor funds, OHCEE I and II.

New York, NY – Oak Hill Advisors (OHA), a leading global credit-focused alternative asset manager, has announced the final close of its OHA CLO Enhanced Equity Fund III (OHCEE III) with total equity commitments of $1.1 billion. This significant fundraising effort will enable OHA to deploy approximately $10 billion in Collateralized Loan Obligations (CLOs), leveraging its deep expertise in structured credit [1].

The fund, which attracted commitments from a global base of investors including pension funds, sovereign wealth funds, corporations, endowments, and family offices, is designed to build on the success of OHA’s predecessor equity funds, OHCEE I and II [2]. OHCEE I, which ended its investment period in 2021, is currently returning capital to investors, while OHCEE II will continue to invest until December 2025.

OHCEE III reflects OHA’s commitment to offering differentiated credit strategies tailored to the evolving needs of investors. The fund aims to utilize OHA’s high-conviction approach to credit selection and portfolio construction, supported by the firm’s experienced team and decades of credit investing expertise [1]. OHA is a long-tenured manager in the CLO market, having issued its first CLO in 2001, and now manages over $22 billion in CLO-related assets across multiple strategies [3].

“OHCEE III reflects OHA’s commitment to offering differentiated credit strategies tailored to the evolving needs of investors,” said Harpreet Anand, Portfolio Manager and Partner at OHA. “Our disciplined approach to CLO equity investing, supported by fundamental research analysis across the credit spectrum, is designed to preserve capital, create long-term value, and outperform across market environments.”

“We are pleased to reach this milestone with OHCEE III, which underscores the continued growth and evolution of our CLO platform,” said TK Narayan, Head of Corporate Structured Products and Partner at OHA. “This fund aims to utilize OHA’s high-conviction approach to credit selection and portfolio construction, supported by our experienced team and decades of credit investing expertise.”

The CLO equity market continues to offer compelling opportunities for managers who can navigate complexity and manage risk effectively. OHCEE III is built to capitalize on these dynamics with a strategy focused on generating alpha in an effort to deliver attractive, risk-adjusted returns for its investors [1].

References
[1] https://www.globenewswire.com/news-release/2025/09/03/3143796/0/en/OHA-Announces-Final-Close-of-1-1-Billion-CLO-Equity-Fund-OHA-CLO-Enhanced-Equity-Fund-III.html
[2] https://www.nasdaq.com/press-release/oha-announces-final-close-11-billion-clo-equity-fund-oha-clo-enhanced-equity-fund-iii
[3] https://www.stocktitan.net/news/TROW/oha-announces-final-close-of-1-1-billion-clo-equity-fund-oha-clo-xlsf7go43wyu.html