T. Rowe Price to Buy Oak Hill for Up to $4.2 Billion

  • Acquisition will help firm expand into private debt investing
  • Private credit market has grown to about $1 trillion
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T. Rowe Price Group Inc. made a rare acquisition in its quest for growth, embracing credit in a sign that the firm needs more than its core mutual fund business to keep expanding.

The company’s $4.2 billion purchase of Oak Hill Advisors, announced Bloomberg TerminalThursday, marks T. Rowe’s first foray into private markets. But it came as the fund giant reported $6.4 billion of net outflows for the third quarter.