Eric Muller, Portfolio Manager and Partner, Chief Executive Officer for OCREDIT at T. Rowe Price, joined Julie Cooling, Founder and CEO of RIA Channel, at iCapital Connect 2026 to discuss the evolving private credit landscape and value of OFLEX.
Muller addresses recent private credit concerns, including questions around portfolio health, over-indexing to software, AI-related risk, and redemptions. He notes that despite these concerns, underlying portfolios remain healthy, with no meaningful increases in nonaccruals and PIK amendments. Muller adds that the asset class is maturing as investors gain a more in-depth understanding of liquidity and redemptions.
T. Rowe Price recently launched OFLEX, a multi-strategy, opportunistic credit interval fund designed to offer diversification value across below-investment-grade credit. The fund invests in six Oak Hill Advisors (OHA) strategies, including direct lending, junior capital solutions, asset-based lending, CLOs/structured credit, special situations, and liquid credit. Muller notes this approach offers the potential for excess returns at different points in the credit cycle.
From a portfolio construction perspective, Muller finds that OFLEX can serve as a supplement to a direct lending allocation or as a potential replacement of a direct lending allocation.
Muller also highlights the firm’s upcoming partnership with Goldman Sachs to launch a multi-strategy alternatives product that provides access to private credit, infrastructure, private equity, and real estate within a single ticker, offering investors broad exposure without requiring them to select individual managers.
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