First Eagle Investments reported that the total assets under management in the First Eagle Credit Opportunities Fund eclipsed the $350 million threshold approximately 18 months since its launch. The fund seeks to provide current income with a focus on delivering attractive risk-adjusted returns over the long term through a multi-sector portfolio that invests primarily in private and public alternative credit assets. As of Dec. 31, 2021, the fund’s distribution yield was 7.09%.
“We are excited to have seen such broad interest in the Credit Opportunities Fund by retail financial professionals and their clients,” Jack Snyder, Jr., national sales manager at Wirehouse and RIA channel and head of retail alternative investments at First Eagle, said. “With traditional fixed income investments continuing to offer low yields but high risks given the rising-rate environment, alternative credit assets may represent an attractive option for those seeking income. The structure of the credit opportunities fund—complemented by education and training tailored specifically for financial professionals—enables us to offer an institutional-quality solution in the retail channel, and we’re happy with the demand we’ve seen.”
As a closed-end interval fund registered under the Investment Company Act of 1940, as amended, the credit opportunities fund provides investors with quarterly liquidity, giving the portfolio managers greater flexibility to invest in alternative income-generating assets like private credit and syndicated loans that historically have offered higher yields relative to traditional securities in exchange for reduced liquidity. At the same time, the fund is offered for sale continuously at NAV, like an open-end mutual fund, and is available to a broad audience with no requirements that investors be accredited or qualified.
“We appreciate the support of our early investors in the Credit Opportunities Fund,” Chris Flynn, president of First Eagle Alternative Credit, said. “As the investment environment in general grows more complicated, we expect deep credit research and prudent investment selection will be key to success in the alternative credit space. We’re pleased to leverage our team’s extensive market experience to provide this ‘core’ alternative credit strategy to retail investors and their financial professionals as they consider the role such assets can play in a traditional allocation.”