Eagle Point Credit Management announced that it has closed $559 million in commitments for its Defensive Income Fund III (DIF III), exceeding both its $400 million target and its original $500 million hard cap. The Greenwich, Connecticut-based private credit investment manager said the strong fundraising reflects continued investor demand for the firm’s Defensive Income Strategy.
DIF III represents the third closed-end fund in Eagle Point’s Defensive Income Fund series. Through this strategy, the firm originates and invests in Portfolio Debt Securities, which are primarily debt securities issued by credit funds to finance portions of their portfolios.
Since launching the strategy in 2020, Eagle Point has originated and invested more than $8 billion in Portfolio Debt Securities across various credit funds, including private credit funds, closed-end funds, commercial mortgage REITs and business development companies. The strategy currently manages more than $6 billion in assets and is supported by an 11-person dedicated investment team.
The firm said DIF III attracted commitments from a diverse group of institutional investors, including public and private pension funds, endowments and foundations, insurance companies and family offices. Eagle Point noted that the participation of these limited partners reflects broad institutional confidence in its approach to Portfolio Debt Securities, a niche asset class the firm identified and helped define.
Founded in 2012 by Thomas Majewski in partnership with Stone Point Capital, Eagle Point Credit Management focuses on private credit strategies in less efficient markets. The firm invests across several areas including Portfolio Debt Securities, regulatory capital relief transactions, infrastructure credit, strategic credit investments, specialty finance and CLO securities. Eagle Point currently manages approximately $14 billion in assets on behalf of institutional and retail investors and employs more than 125 professionals.
KEY QUOTES
“We’re pleased with the strong support from both existing and new investors. We believe the continued strong demand for this strategy is a testament to our ability to generate returns in this segment of fund finance that are comparable to those of corporate direct lending but with less risk. We greatly appreciate the trust and confidence our investors place in us to deliver on expectations.”
Dan Spinner, Senior Principal And Portfolio Manager For The Defensive Income Strategy, Eagle Point Credit Management
