Eagle Point Credit Management, a private credit investment manager, closed on $559 million in commitments to the firm’s Defensive Income Fund III (DIF III). DIF III exceeded its target of $400 million and original hard cap of $500 million.
DIF III is Eagle Point’s third closed-end fund in its Defensive Income Fund series. Within its Defensive Income Strategy, Eagle Point originates and invests in portfolio debt securities (PDS), which are primarily debt securities issued by credit funds to finance a portion of their portfolios. Since the launch of the strategy in 2020, Eagle Point has originated and invested in over $8 billion of PDS across a range of credit funds, including private credit funds, closed-end funds, commercial mortgage REITs and BDCs. The strategy today has over $6 billion of AUM and an 11-person dedicated investment team.
“We’re pleased with the strong support from both existing and new investors,” Dan Spinner, senior principal and portfolio manager for the defensive income strategy, said. “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.”
DIF III was supported by a diverse group of limited partners, including public and private pension funds, endowments and foundations, insurance companies and family offices.
