Eagle Point Fund Achieves 12.8% Annual Return

Eagle Point Institutional Income Fund reported a 12.8% annual return at midyear 2024, distributing $3.1 million to investors and achieving a 9.7% annualized distribution rate, while surpassing $100 million in total assets.

September 05, 2024

Eagle Point Institutional Income Fund, a non-traded closed-end fund managed by Eagle Point Credit Management LLC, has surpassed $100 million in total assets, including available borrowings under a revolving credit facility.

“We believe that reaching the $100 million milestone reflects our clients’ conviction that the fund is well-positioned to continue to provide enhanced risk-adjusted returns,” said Thomas Majewski, the fund’s chairman and CEO.

For the 12-month period ending June 30, 2024, the fund posted a net total return of 12.8%, with its net asset value per share increasing by 2.8% from $9.70 to $9.97 over the same period.

In an August shareholder letter, the fund noted that its strong performance in the first half of 2024 allowed it to distribute $3.1 million to investors. Shareholders received monthly distributions totaling $0.483 per share, representing a 9.7% annualized distribution rate—up 5.2% from the second half of 2023 when the fund distributed $0.459 per share. As previously reported, the fund raised its distribution rate from 8.5% to 9% starting in April.

The fund's portfolio includes collateralized loan obligation (CLO) equity investments, acquired in both primary and secondary markets, with a weighted average effective yield of 17.9%. As of June 30, the fund’s CLO equity portfolio had a weighted average remaining reinvestment period of 3.5 years.

As of mid-2024, the fund held 58 CLO equity investments, providing exposure to nearly 1,300 U.S. companies across over 60 industries. Eagle Point Credit focuses on underserved credit markets, investing in areas such as CLO debt, CLO equity, regulatory capital relief, portfolio debt securities, and strategic credit.