T. Rowe Price Launches First CLO, Expands into Direct Management
T. Rowe Price has issued its first collateralized loan obligation, marking a strategic shift from CLO tranche investor to full-scale CLO manager. The inaugural vehicle, ROWE CLO 2026-1, totals $403.6 million and is backed primarily by broadly syndicated first-lien loans.
The move builds on the firm’s long-standing presence in leveraged credit, including bank loan investing since 2002 and CLO tranche investing since 2016. The new platform leverages the same fixed income team and credit selection framework used across its existing bank loan and securitized products businesses.
“We believe this move will expand our relationships with clients globally, across both debt and equity tranches, by meeting growing demand for these securities,” said Eric Veiel.
The CLO will be managed by co-portfolio managers Steve Finamore and Adam Goldberg, alongside Paul Massaro, CIO and head of global high yield, who oversees the firm’s flagship floating rate strategies.
The CLO initiative will operate independently from Oak Hill Advisors, which T. Rowe Price acquired in 2021, with both platforms maintaining separate investment approaches.
As of February 28, T. Rowe Price managed $335 billion in fixed income assets, including $40 billion in leveraged credit and structured finance. The firm currently allocates $17 billion to bank loans and CLO tranches, underscoring its deep exposure to the asset class.
The transaction was arranged and structured by Wells Fargo Securities, with T. Rowe Price Associates serving as investment adviser.