Eagle Point Fund Increases Distribution Rate to 9%
Following a positive performance in 2023 and its anticipated performance in 2024, Eagle Point Institutional Income Fund is increasing its annualized distribution rate from 8.5% to 9% beginning in April 2024. This represents a 5.9% increase in annual distributions for the non-traded, closed-end fund.
“Throughout 2023, Eagle Point Institutional Income Fund delivered consistent distributions to its shareholders while preserving principal value. By co-investing alongside other [collateralized loan obligation]-focused funds and accounts managed by Eagle Point, the fund benefits from the scale and institutional nature of our adviser’s broader investment platform,” said Thomas Majewski, chairman and chief executive officer of the fund.
The news comes on the heels of the adviser – Eagle Point Credit Management LLC – a specialist credit asset manager with over $9.1 billion of assets under management, sharing the full end-of-year financial results for the fund.
During the year, the Eagle Point fund paid total distributions of $0.91 per share to shareholders and generated net investment income of $1.40 per share, well in excess of distributions paid during the period. The fund’s net asset value per share as of Dec. 31, 2023, was $10.23, compared to NAV per share of $9.97 as of Dec. 31, 2022. It generated a total net return of 12.3% for the year.
The distribution paid on Jan. 31, 2024, represented the fund’s 19th consecutive monthly distribution since commencing operations. Lastly, the fund reported its NAV per share as of Jan. 31 of $10.37, representing an increase of 1.37% compared to the NAV per share as of Dec. 31.
Eagle Point Institutional Income Fund seeks to provide investors with an attractive income stream by investing primarily in diversified pools of senior secured loans called CLOs. As of Dec. 31, 2023, the fund’s portfolio of 40 CLO equity investments provided exposure to 1,283 different U.S. companies across 63 different industries. The fund currently offers its shares on a continuous basis via monthly closings.
Eagle Point Credit is a specialist investment manager focused on overlooked and underserved credit markets with low to zero historical losses by investing in CLO debt, CLO equity, regulatory capital relief, portfolio debt securities (lending to credit vehicles), and strategic credit.
For more Eagle Point Credit Management news, please visit their directory page.
