T. ROWE PRICE, OHA AND ASPIDA FORMING STRATEGIC PARTNERSHIP

Rhea-AI Summary

T. Rowe Price (NASDAQ-GS: TROW), Oak Hill Advisors (OHA), and Aspida Holdings announced a strategic partnership to support their business growth. T. Rowe Price and OHA will manage certain Aspida public and private assets, and the partners will explore product development initiatives. T. Rowe Price is already a minority investor in Aspida.

Aspida, launched in 2020, has grown to over $19 billion in total assets as of September 30, 2024. The company provides retirement and reinsurance solutions through its technology platform and is supported by Ares Insurance Solutions (AIS). Ares recently raised over $3 billion in total capital to support Aspida's growth.

T. Rowe Price, serving insurance companies since 1985, manages $1.6 trillion in assets, including over $1 trillion in retirement-related assets. The partnership aims to leverage T. Rowe Price and OHA's capabilities to provide diversified investment strategies to insurance companies.

Positive

• Strategic partnership expanding T. Rowe Price's insurance business capabilities
• Access to Aspida's $19 billion asset base for management
• Potential new revenue stream from managing Aspida's assets
• Product development opportunities in the insurance sector

Negative

• None.

Insights

Financial Services Strategist

This strategic partnership marks a pivotal evolution in T. Rowe Price's business model, representing a calculated move to capitalize on the growing convergence of asset management and insurance sectors. The collaboration with Aspida, which has rapidly grown to $19 billion in assets since 2020, provides TROW with a significant foothold in the lucrative insurance asset management space.

The strategic value proposition is multifaceted: First, it diversifies TROW's revenue streams beyond traditional asset management fees. Second, it provides stable, long-term assets under management through insurance portfolios, which typically have lower redemption rates than retail or institutional funds. Third, it positions TROW to capture a larger share of the retirement solutions market, leveraging their existing $1 trillion in retirement-related assets.

The timing is particularly strategic given the current market dynamics. Insurance companies are increasingly seeking sophisticated investment solutions to enhance yields in a challenging rate environment, while asset managers are looking to secure more stable, long-term capital. This partnership could serve as a template for future insurance-asset management collaborations, potentially leading to increased industry consolidation.

The involvement of OHA, TROW's alternative credit subsidiary, is particularly noteworthy as it enables the partnership to offer a comprehensive suite of investment solutions across both public and private markets. This capability is important for insurance companies seeking yield enhancement through alternative investments while managing regulatory capital requirements.

For investors, this represents a meaningful strategic pivot that could enhance TROW's competitive positioning and create new growth vectors in the institutional market. The partnership's success could lead to similar arrangements with other insurers, potentially establishing TROW as a key player in the insurance asset management space.

Reflects T. Rowe Price's commitment to expanding its client capabilities in insurance, its leadership in retirement asset management, and the growing intersection of traditional asset management, alternative investments, and insurance

BALTIMORE and NEW YORK and DURHAM, N.C., Feb. 3, 2025 /PRNewswire/ -- T. Rowe Price Group, Inc. (NASDAQ-GS: TROW), a global investment management firm and a leader in retirement, T. Rowe Price's alternative credit subsidiary Oak Hill Advisors (OHA), and life insurance and annuity company Aspida Holdings Ltd. (together with its subsidiaries "Aspida"), today announced they are forming a strategic partnership to support the growth of their respective businesses.

In connection with this announcement, T. Rowe Price and OHA expect to manage certain Aspida public and private assets. In addition, T. Rowe Price, OHA, and Aspida will explore product development and other growth initiatives.

T. Rowe Price is an existing equity investor in Aspida, having previously taken a minority interest to support the long-term growth of the business.

"We are excited about the potential of this strategic partnership with Aspida and its implications for our broader growth in insurance," said Rob Sharps, Chair, CEO and President of T. Rowe Price. "The partnership highlights our continued commitment to the expansion of our insurance business and to delivering innovative investment opportunities for our clients with our customary high-touch service. We look forward to the opportunity to develop tailored solutions with Aspida and other insurance partners over time."

Aspida is focused on providing retirement and reinsurance solutions to its annuity and institutional clients through its leading technology platform and open architecture asset management framework. Aspida is supported by the Ares Insurance Solutions ("AIS") business as its dedicated investment management, capital solutions and corporate development partner. After launching in 2020, Aspida has grown its platform organically to over $19 billion in total assets, as of September 30, 2024. AIS is part of Ares Management Corporation ("Ares"), which recently announced the raise of over $3 billion of total capital, including equity commitments from third parties, Ares, and its affiliates as well as credit facilities, to support the long-term growth of Aspida.

"We believe Aspida is a world class platform and that, together with T. Rowe Price and OHA's complementary asset origination and investment capabilities, it will be even better positioned for success," said Bill Bohnsack, President and Senior Partner of OHA. "We look forward to working closely with the Aspida and AIS teams in the years ahead to help drive Aspida's growth and deliver greater financial security for its policyholders."

"This announcement marks another significant step in our commitment to delivering exceptional financial security and service to our clients," said Lou Hensley, Chief Executive Officer and President of Aspida. "The deep investment and retirement market experience brought by T. Rowe Price and OHA, combined with the continued support of Ares, position us to develop even stronger, more innovative solutions, tailored to the needs of those we serve."

This partnership highlights T. Rowe Price's commitment to expanding its client capabilities in insurance. T. Rowe Price has been serving insurance companies since 1985 and is one of the world's largest institutional global asset managers, with $1.6 trillion in assets under management, including over $1 trillion of retirement-related assets. The partnership will draw upon the strength of both T. Rowe Price and OHA to bring diversified investment strategies and related services to insurance companies and is expected to help drive the continued growth of Aspida.

ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW) helps individuals and institutions around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Clients rely on the award-winning firm for its retirement expertise and active management of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price serves millions of clients globally and manages US $1.61 trillion in assets under management as of December 31, 2024. About two-thirds of the assets under management are retirement-related. News and other updates can be found on Facebook, Instagram, LinkedIn, X, YouTube, and troweprice.com/newsroom.

ABOUT OAK HILL ADVISORS
Oak Hill Advisors (OHA) is a leading global credit-focused alternative asset manager with over 30 years of investment experience. OHA works with institutions and individuals and seeks to deliver a consistent track record of attractive risk-adjusted returns. The firm manages approximately $71 billion of capital across credit strategies, including private credit, high yield bonds, leveraged loans, stressed and distressed debt and collateralized loan obligations as of September 30, 2024. OHA's emphasis on long-term partnerships with companies, sponsors and other partners provides access to a proprietary opportunity set, allowing for customized credit solutions across market cycles. With over 400 experienced professionals across six global offices, OHA brings a collaborative approach to offering investors a single platform to meet their diverse credit needs. OHA is the private markets platform of T. Rowe Price Group, Inc. (NASDAQ – GS: TROW). For more information, please visit www.oakhilladvisors.com.

ABOUT ASPIDA
Aspida Holdings Ltd., through its subsidiaries (collectively "Aspida"), is focused on providing retirement and reinsurance solutions, with total assets of over $19 billion as of September 30, 2024. Aspida's U.S. platform – Aspida Life Insurance Company – is based in Durham, N.C., and focuses on leveraging technology and agility to help clients achieve – and protect – their dreams. Aspida Re, with offices in Hamilton, Bermuda and the Cayman Islands, is focused on providing efficient and secure reinsurance solutions to life and annuity clients globally. Aspida seeks to be a trusted partner in its clients' financial security while driving its growth by doing good for the communities it serves. For more information, please visit: www.aspida.com or follow them on LinkedIn.

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SOURCE T. Rowe Price Group

FAQ

What is the size of Aspida's total assets that TROW will help manage?

Aspida has over $19 billion in total assets as of September 30, 2024, which T. Rowe Price and OHA will help manage through their strategic partnership.

How much capital did Ares raise to support Aspida's growth with TROW partnership?

Ares raised over $3 billion in total capital, including equity commitments from third parties, Ares, and its affiliates, as well as credit facilities.

What is T. Rowe Price's (TROW) current assets under management?

T. Rowe Price manages $1.6 trillion in assets under management, including over $1 trillion of retirement-related assets.

When did TROW begin serving insurance companies?

T. Rowe Price has been serving insurance companies since 1985.

When was Aspida launched before partnering with TROW?

Aspida was launched in 2020 and has grown its platform organically to over $19 billion in total assets.