Oak Hill closes on $2.7bn distressed fund

Alternative investment firm blows past target in final close of global distressed debt fund.

Oak Hill Advisors (OHA) has closed its distressed debt fund with $2.7 billion in commitments, according to an SEC filing.

The New York-based firm started fundraising for the OHA Strategic Credit Fund II in fall 2015 with a $2 billion target, as PDI exclusively reported.

The fund held an interim close this June after reaching that target. Investors that have committed to the fund include Teachers’ Retirement System of Louisiana ($75 million); the Alameda County Employees Retirement Association ($50 million); the New York State Common Retirement Fund ($250 million); and other state pension funds.

OHA did not respond to request for comment.

This fundraise outstrips OHA’s previous Strategic Credit Fund, which raised $1.1 billion, exceeding its $750 million target, in 2009. The Fund II is the firm’s first distressed debt fund focused on North America and Europe simultaneously. Its first dedicated European distressed fund, OHA European Distressed Credit Fund, raised $1.35 billion in 2012, while the OHA US Distressed Credit Fund raised $1.13 billion in 2008.

The alternative investment firm holds approximately $4.7 billion of capital in stressed or distressed debt, with a total of $29 billion in assets under management across performing and distressed credit related investments globally. Launched in 1991, OHA is headquartered in New York, with offices in Fort Worth, Texas, Los Angeles and London.