Eagle Point Credit Management LLC (“Eagle Point”), a specialist credit asset manager with approximately $7.5 billion of assets under management,1 announced that Eagle Point Institutional Income Fund (the “Fund”), a non-traded closed-end fund registered under the Investment Company Act of 1940, reported financial results for its initial period of operations, from June 1, 2022 to December 31, 2022. The Fund’s net asset value per share as of December 31, 2022 was $9.97, compared to $10.00 per share on June 1, 2022. The Fund also paid $0.455 per share of total distributions to shareholders in 2022.
The Fund subsequently paid $0.152 per share of additional distributions to shareholders in 2023 (January and February 2023 distribution payments), representing an 8.5% annualized distribution rate.2 The February distribution represents the Fund’s eighth consecutive monthly distribution since commencing operations. The Fund’s net asset value per share as of January 31, 2023 was $10.22.
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 collateralized loan obligations (“CLOs”). Senior secured loans held by CLOs are typically floating rate loans to U.S. companies with a first lien position in the capital structure. Through its investments in equity and junior debt securities of CLOs, the Fund seeks to provide diversified exposure to U.S. companies across various industries.
Thomas Majewski, the Fund’s Chief Executive Officer, said, “We are pleased with the results of Eagle Point Institutional Income Fund in 2022. During a particularly volatile and challenging macroeconomic environment, we have been able to preserve capital and pay an attractive distribution to investors. Notably, our net investment income coverage of distributions declared and paid in 2022 was 111%. We believe the Fund is well positioned to continue achieving our investment objectives.”
The Fund seeks to leverage Eagle Point’s established institutional investment management business to deliver attractive risk-adjusted returns for the Fund’s investors over the long-term. The Fund’s investments in CLO securities, which typically pay a floating rate of interest, are expected to be more resilient than fixed rate credit investments in a rising interest rate and inflationary environment. The Fund currently offers its shares on a continuous basis in monthly closings.
Please refer to the Fund’s annual report available for additional information on the Fund’s financial results for the period ended December 31, 2022.
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