T. Rowe Price’s $4.2 Billion Acquisition of Oak Hill Advisors

Dechert advised T. Rowe Price Group in the transaction, while Paul, Weiss, Rifkind, Wharton & Garrison advised OHA. Fried Frank advised Wafra Inc., an investor in Oak Hill.

T. Rowe Price Group executed its definitive agreement to purchase Oak Hill Advisors, an alternative investment firm with US$53 billion of capital under management across its private, distressed, special situations, liquid, structured credit, and real asset strategies.

Under the terms of the transaction, T. Rowe Price will acquire 100% of the equity of OHA and certain other entities that have common ownership for a purchase price of up to approximately US$4.2 billion, with US$3.3 billion payable at closing, approximately 74% in cash and 26% in T. Rowe Price common stock, and up to an additional $900 million in cash upon the achievement of certain business milestones beginning in 2025. The purchase price includes the retirement of OHA debt outstanding at closing. Excluding amortization of intangibles and the expense impact of the earnout, the transaction is expected to be accretive to T. Rowe Price diluted earnings per share by a low-to-mid single digit percentage in 2022.

T. Rowe Price is a global investment management organization with US$1.61 trillion in assets under management as of September 30, 2021. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools.

OHA is a leading alternative investment firm with $53 billion of capital under management (as of July 31, 2021) across its private, distressed, special situations, liquid, structured credit, and real asset strategies.

Evercore served as financial advisor to T. Rowe Price. J.P. Morgan Securities LLC and M. Klein & Company served as financial advisors to OHA.

The Dechert team that advised T. Rowe Price includes corporate partners Ken Young, Michael Darby and Jonathan Angell, and associates Ross MacConnell, Ranjini Ramesh, Laura Konkel, Anna Tomczyk, and law clerks Ryan Abercrombie and Evan Heller; financial services partners Richard Horowitz, Mark Perlow, Richard Frase, Michael Sherman, Susan Grafton and Michael Wong, counsel Simon Wright, and associates Paul Stevens, Elona Belokon, Amanda Liu, Lindsay Trapp; employee benefits partners Kevin Kay, Steven Rabitz and Howard Klein, and associate Jake Phillips; antitrust partner Clemens York and James Fishkin, counsels Beverly Ang and Michael Okkonen, and associate Thirith von Döhren; tax partner Joshua Milgrim, and associates Guen Park and Elizabeth Guidi; intellectual property partner Thomas Rayski, and associates Frank Hwang and Madeleine White; cybersecurity associate Hilary Bonaccorsi; litigation staff attorneys Aaron Kamsler and James Figorski; labor counsel Jeffrey Rubin, and real estate special counsel Francois Quintard-Morenas.

The Paul, Weiss team included corporate partners Ariel Deckelbaum, Marco Masotti, Kenneth Schneider, Conrad van Loggerenberg, Manuel Frey, Raphael Russo and John Kennedy and counsel Erika Detjen, Jyoti Sharma, Maury Slevin, Caitlin Kelly, Hilary Christian, Philip Heimowitz and Corinne Musa; executive compensation partner Andrew Gaines and counsel Reuven Falik, Jacob Glazeski and Bruce Goldberger; tax partner David Mayo; intellectual property partner Claudine Meredith-Goujon; real estate partner Peter Fisch; litigation partner Andrew Ehrlich and counsel Steven Herzog; antitrust counsel Yuni Sobel and Marta Kelly; and personal representation counsel Alex Segal. 

The Fried Frank team was led by corporate partner Andrew Colosimo, and included corporate partner Erica Jaffe, tax partner Kenneth Rosenfeld, and corporate special counsel Patrick Greeley.

Involved fees earner: Beverly Ang – Dechert; Jonathan Angell – Dechert; Hilary Bonaccorsi – Dechert; Michael Darby – Dechert; James Figorski – Dechert; James Fishkin – Dechert; Richard Frase – Dechert; K. Susan Grafton – Dechert; Elizabeth Guidi – Dechert; Richard Horowitz – Dechert; Frank Hwang – Dechert; Aaron Kamsler – Dechert; Kevin Kay – Dechert; Howard Klein – Dechert; Laura Konkel – Dechert; Amanda Liu – Dechert; Ross MacConnell – Dechert; Joshua Milgrim – Dechert; Michael Okkonen – Dechert; Guen Park – Dechert; Mark Perlow – Dechert; Jake Phillips – Dechert; Francois Quintard-Morenas – Dechert; Steven Rabitz – Dechert; Ranjini Ramesh – Dechert; Thomas Rayski – Dechert; Jeffrey Rubin – Dechert; Michael Sherman – Dechert; Paul Stevens – Dechert; Anna Tomczyk – Dechert; Lindsay Trapp – Dechert; Thirith von Döhren – Dechert; Madeleine White – Dechert; Michael Wong – Dechert; Simon Wright – Dechert; Clemens York von Wartenburg – Dechert; Kenneth Young – Dechert; Andrew Colosimo – Fried Frank Harris Shriver & Jacobson; Patrick Greeley – Fried Frank Harris Shriver & Jacobson; Erica Jaffe – Fried Frank Harris Shriver & Jacobson; Kenneth Rosenfeld – Fried Frank Harris Shriver & Jacobson; Hilary Christian – Paul Weiss Rifkind Wharton & Garrison; Ariel Deckelbaum – Paul Weiss Rifkind Wharton & Garrison; Erika Detjen – Paul Weiss Rifkind Wharton & Garrison; Andrew Ehrlich – Paul Weiss Rifkind Wharton & Garrison; Reuven Falik – Paul Weiss Rifkind Wharton & Garrison; Peter Fisch – Paul Weiss Rifkind Wharton & Garrison; Manuel Frey – Paul Weiss Rifkind Wharton & Garrison; Andrew Gaines – Paul Weiss Rifkind Wharton & Garrison; Jacob Glazeski – Paul Weiss Rifkind Wharton & Garrison; Bruce Goldberger – Paul Weiss Rifkind Wharton & Garrison; Philip Heimowitz – Paul Weiss Rifkind Wharton & Garrison; Steven Herzog – Paul Weiss Rifkind Wharton & Garrison; Caitlin Kelly – Paul Weiss Rifkind Wharton & Garrison; Marta Kelly – Paul Weiss Rifkind Wharton & Garrison; John Kennedy – Paul Weiss Rifkind Wharton & Garrison; Marco Masotti – Paul Weiss Rifkind Wharton & Garrison; David Mayo – Paul Weiss Rifkind Wharton & Garrison; Claudine Meredith-Goujon – Paul Weiss Rifkind Wharton & Garrison; Corinne Musa – Paul Weiss Rifkind Wharton & Garrison; Raphael Russo – Paul Weiss Rifkind Wharton & Garrison; Kenneth Schneider – Paul Weiss Rifkind Wharton & Garrison; Alex Segal – Paul Weiss Rifkind Wharton & Garrison; Jyoti Sharma – Paul Weiss Rifkind Wharton & Garrison; Maury Slevin – Paul Weiss Rifkind Wharton & Garrison; Yuni Sobel – Paul Weiss Rifkind Wharton & Garrison; Conrad van Loggerenberg – Paul Weiss Rifkind Wharton & Garrison;

Law Firms: Dechert; Fried Frank Harris Shriver & Jacobson; Paul Weiss Rifkind Wharton & Garrison;

Clients: Oak Hill Advisors L.P.; T. Rowe Price; Wafra Inc.;