First Eagle Investment Management LLC, a privately-owned investment management firm with approximately $101 billion in assets under management, has launched the First Eagle Credit Opportunities Fund (Class A: FECAX, Class I: FECRX).
The fund seeks to raise $2 billion to invest primarily in private and public credit assets—including direct lending, middle-market “club” loans, syndicated bank loans and high yield bonds.
Class A shares are initially priced at $26.10 and have a maximum sales load of 3.5 percent, a 0.50 percent distribution fee, and 0.25 percent shareholder servicing fee. The minimum investment is generally $2,500 per account.
Class I shares have an initial offering price of $25.19 with no sales load, distribution fee or shareholder servicing fee. The minimum investment is generally $1 million.
The management fee for both Class A and Class I shares is 1.56 percent.
“With the Credit Opportunities Fund we’re aiming to provide investors with an attractive, consistent income stream through exposure to parts of the US credit market typically less accessible to the retail channel,” said Christopher Flynn, president of First Eagle Alternative Credit. “By focusing on senior-secured assets and investing across multiple sectors and risk profiles, we look to generate this current income alongside attractive downside protection compared to other higher-yielding fixed income strategies.”
The fund’s distributor is FEF Distributors LLC.
First Eagle Investment Management is headquartered in New York and its investment capabilities include equity, fixed income, alternative credit and multi-asset strategies.