Eagle Point Credit Management has closed its Defensive Income Fund III with $559m (£415m) in commitments, significantly exceeding its target of $400m and original hard cap of $500m.
The fund is Eagle Point’s third closed-end fund in its defensive income fund series, where the firm originates and invests in portfolio debt securities, which are primarily debt securities issued by credit funds to finance a portion of their portfolios.
Read more: BNP Paribas AM Alts closes first GP Stakes fund at €540m
Since the launch of the strategy in 2020, Eagle Point has originated and invested in over $8bn of these securities across a range of credit funds, including private credit funds, closed-end funds, commercial mortgage REITs and BDCs.
The strategy today has over $6bn of assets under management and an 11-person investment team.
Read more: 360 ONE Asset closes fifth private credit fund with $400m commitments
“We’re pleased with the strong support from both existing and new investors,” said Dan Spinner, senior principal and portfolio manager for the defensive income strategy.
“We believe the continued strong demand for this strategy is a testament to our ability to generate returns in this segment of fund finance that are comparable to those of corporate direct lending but with less risk. We greatly appreciate the trust and confidence our investors place in us to deliver on expectations.”
Read more: KKR and Puma form £500m joint venture to fund UK housing schemes
The fund was supported by a diverse group of limited partners including public and private pension funds, endowments and foundations, insurance companies and family offices.
