Kuwait said to buy stake in US investment firm

Unit of Kuwait's social-security system reportedly to have bought 25% stake in Oak Hill Advisors
Kuwait said to buy stake in US investment firm
By Bloomberg
Wed 28 Feb 2018 02:01 PM

Oak Hill Advisors, after more than doubling its assets in six years, is laying the groundwork for further growth as falling bond prices and volatile stocks enhance the allure of credit investments.

This year, Oak Hill has recruited a top banker, Eric Muller, from Goldman Sachs Group, promoted three of its staff to partner and brokered the sale of a roughly 25 percent stake in the business to a unit of Kuwait’s social-security system, a person with direct knowledge of the moves said, asking not to be identified because the matter is private.

Oak Hill invests across the risk spectrum, in everything from mortgage-backed securities to collateralized loan obligations.

It was among a handful of large alternative-asset managers that benefited as historically low interest rates drove pension plans, endowments and sovereign-wealth funds to credit in search of higher returns. Oak Hill’s assets under management surged to $32 billion from $12 billion in 2011.

Now, as stocks stutter and yields on Treasuries and corporate bonds rise, Oak Hill’s investments in floating-rate loans and secured debt may prove additionally attractive.

The firm is starting to raise new funds, the person said, an effort that may boost assets even more. Oak Hill’s most recent pool, a $2.7 billion distressed-credit fund, was raised in 2016.

A spokeswoman for New York-based Oak Hill declined to comment.

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Last Updated: Wed 28 Feb 2018 01:08 PM GST

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