Why being multi-strategy matters as credit markets tighten and evolve

Please note, this interview was recorded Monday 27 October 2025

Imagine deciding to invest with an equities manager, only to find out that they only invest in utility companies. They might do it very well, but you'd wonder why they wouldn't broaden their horizons (and opportunity set) by looking beyond that niche part of the market. 

Private credit is no different. Some managers specialise in one segment of the market; others, like Oak Hill Advisors (OHA), have the flexibility to move across it. 

With more than US$98 billion under management and three decades of experience, OHA’s multi-strategy approach is designed to seize opportunities wherever they appear; across direct lending, junior capital solutions, liquid credit, CLO's/structured credit, asset-backed finance and special situations.

That flexibility, says Adam Nankervis, Portfolio Manager and Partner at OHA, is the cornerstone of the firm’s success.

“It’s hard to predict what parts of the credit market are going to provide opportunity. Being nimble in what you’re going after means you can take advantage of the opportunity set as it presents," he says.

It’s an approach that feels particularly relevant today. With interest rates plateauing and rolling over, spreads tightening, and capital crowding into popular segments of the market, the ability to shift gears quickly - from private to public markets, from traditional corporate loans to asset-backed and opportunistic credit - gives OHA a distinct edge.

As Nankervis puts it, theirs is an “all-weather” strategy built for changing conditions and designed to deliver investors the best risk-adjusted return, wherever that may be found. In the interview above, for Livewire's Alternatives in Focus series, Nankervis shares more about OHA's approach, and some of the opportunities it is pursuing right now. 

Watch the video above for the full experience, or read a summary below

INTERVIEW SUMMARY

Taking a broad lens on global credit

Nankervis describes OHA's investing style as deliberately flexible and “all-weather”. Rather than being confined to one corner of the credit market, OHA’s multi-strategy approach spans private and public credit, CLO's/structured credit, special situations, and asset-backed opportunities across the US and developed Europe.

“We’re trying to get the best risk-adjusted return, whether it’s public, private, secured, more junior corporate lending or asset-backed,” he says. 

“At the moment, with high-yield spreads sub-300, it’s hard to look at that market and say we should be putting beta high-yield risk on. But there are always idiosyncratic opportunities, and being nimble lets us take advantage when they arise.”

The firm’s ability to pivot quickly between opportunity sets has proven critical, not least during recent years of macro uncertainty, from COVID-19 to inflation shocks and now tariff disruptions.

Why flexibility matters more than forecasts

Asked about the outlook for interest rates, Nankervis doesn’t pretend to have a crystal ball.

“We’re not trying to take pointed views on rates,” he says. “We’re trying to take credit views and get portfolio companies that we find attractive.”

Still, he acknowledges that rates may remain “higher for longer” as key forces such as tariffs and immigration policies continue to ripple through the US economy. Against that backdrop, OHA’s focus is on individual company fundamentals: businesses with pricing power, resilient cash flows, and the ability to manage through disruption.

“The floating rate exposure is just as much an output of the opportunity set when we look at company-by-company investments,” he explains.

Where the best opportunities lie

While direct lending was the dominant area of deployment a few years ago, the opportunity set has since broadened. 

“If you asked me that in April of this year, I would’ve said liquid credit markets, but that was really short-lived,” Nankervis says. 

“Now it’s quite a broad asset base that we’re deploying within credit - direct lending, special situations, and the asset-backed market are all offering interesting opportunities.”

He points to structural growth themes driving activity in asset-backed finance, including data centres, fibre buildouts, cell towers, and transportation. 

“We’re picking the best opportunities across those markets and it really is balanced in our deployment and the opportunity set.”

Even with more capital flowing into private credit, OHA still sees a meaningful premium for investors. “Private credit spreads have come in, but you’re still getting a really attractive premium,” he says. “They’ve gone from great to what is a good profile at the moment.”

A nimble, multi-strategy engine

One of Oak Hill’s defining features is that all assets, across its US$98 billion platform, must compete to be included in the portfolio. 

“This fund will be a best idea across Oak Hill’s platform,” Nankervis explains. “If one part of the credit market gets tight, we can pivot to something else.”

He illustrates the advantage with recent history: “If you go back through how COVID evolved, initially high-yield and investment grade (IG) bonds were a great opportunity set. Then there was rescue financing. Then came large private lending, and now we’re seeing more in special situations and asset-backed. Being nimble lets us take advantage as opportunities shift.”

Why size and structure matter

Oak Hill’s roots in the syndicated and stressed credit markets have given it deep experience in managing complex borrowers. That experience, Nankervis says, favours larger, more substantial businesses.

“Larger businesses have more pricing power with their customers and suppliers. The management teams are deeper, and when you get things wrong, there’s more you can do to restructure and get your dollars back,” he explains. 

“It takes similar resources to restructure small versus large businesses, but large businesses have more relevance to the world they’re in, and that gives you more recovery options.”

Ultimately, that’s the essence of OHA’s multi-strategy approach: discipline, depth, and diversification. It’s an approach built to find value in any environment and, more importantly, to keep finding it as markets change.