Oak Hill Advisors is launching a retail fund targeting private credit opportunities amid a $1.8 trillion market facing redemptions and skepticism. CEO Glenn August says the firm's redemptions have been manageable and they're seeing attractive buying opportunities that weren't available six months ago. The new interval fund will deploy capital across direct lending, asset-backed finance, CLOs, public credit, and special situations.

The non-publicly traded vehicle, adopting the OFLEX ticker, allows daily purchases and quarterly redemptions of at least 5% of net assets. August views this as giving retail investors access to a strategy previously reserved for institutional clients like public pension funds. This comes as the industry deals with concerns about AI impact on borrowers and varied approaches to redemption caps among competitors.

While institutional investors are already scooping up assets, August expects individual investors to take more time returning to the market. He notes that the best opportunities often emerge during market disruptions, with current deals offering better compensation. Oak Hill, acquired by T. Rowe Price in 2021, remains committed to private credit despite industry warnings of potential shakeouts.