Oak Hill Advisors has opened a new office in Los Angeles to address opportunities in the residential mortgage market, the firm announced in a statement on Friday.
The firm hired former WJ Bradley Mortgage Capital senior managing director Ken Usell to lead the office amd oversee investment and trading activities in the performing residential loan sector. Usell focused on the residential loan market in his role at WJ Bradley.
“The opening of this office and Kent's addition to the firm represents OHA's expansion into the investment of newly originated mortgage loans in a market undergoing transformational change,” said Oak Hill partner Jason Serrano in a statement.
In October, Oak Hill closed vehicle OHA Newbury Partners on $1.2 billion. The fund will target opportunities created by dislocations in the US residential mortgage market.
“We are excited about the favorable supply/demand dynamics that exist in today’s whole loan market,” Serrano said at the time.
Oak Hill’s investment strategy pursues opportunities in the leveraged loan, high yield bond, structured product, distressed securities and turnaround markets. The firm had approximately $21.2 billion under management as of September, according to its website.
In September, the Los Angeles County Employees’ Retirement Association committed $200 million to a separate account managed by Oak Hill. The firm will collect a 15 percent incentive fee and charge a 0.7 management fee on the account.