Generally, private credit refers to loans that are directly originated and negotiated between a borrower and the lender or a small group of lenders. These investments are typically sourced through direct dialogue with counterparties, as opposed to through intermediaries such as banks or brokers. This is distinct from a syndicated loan, which is generally originated by a bank and then syndicated, or sold, in several pieces to other investors, where influence on the economics and structure can be limited. Originated loans are generally held until maturity or until they are refinanced by the borrower. Syndicated loans often have liquid markets and can be traded by investors. We believe that our scale, expertise, and flexibility to tailor terms to the needs of our borrowers and our ability to drive transaction processes are competitive advantages for directly originating and structuring loans at attractive terms for our investors.

A business development company (BDC) is a special closed-end investment vehicle that is regulated under the 1940 Act. BDCs generally must invest at least 70% of their total assets in private U.S. companies or public companies with less than $250 M in market capitalization and are required to distribute at least 90% of its investment company taxable income for the taxable year.

A non-exchange traded BDC’s shares are not listed for trading on a stock exchange or other securities market. The term “perpetual-life” differentiates our structure from BDCs that have a finite offering period and/or have a predefined time period to pursue a liquidity event or to wind down the fund. In contrast, in a perpetual-life BDC, we expect to offer common shares continuously at the monthly share price, and we have an indefinite duration, with no obligation to effect a liquidity event at any time.

The scale of our firmwide investment activities creates a high volume and frequency of engagement with sponsors, borrowers, and other partners and counterparties. This framework continuously enriches knowledge of issuers and sponsors and their strategic and financing objectives. We believe that the frequency of our dialogue not only enhances our relationships but also positions us to engage early when the next financing opportunity arises. OHA further believes that our integrated, industry-focused investment model facilitates our access to and working relationship with market participants—further enhancing deal flow and proprietary sourcing.