First Eagle Investments announced that the First Eagle Credit Opportunities Fund had recently eclipsed $500 million in managed assets. The Fund, which was launched in December 2020, seeks to provide current income with a focus on delivering attractive risk-adjusted returns over the long term through a multisector portfolio that invests primarily in private and public alternative credit assets. As of August 31, 2022, the Fund’s distribution yield was 6.80%.
“While we believe alternative credit assets continue to represent an attractive option for retail financial professionals seeking income on behalf of their clients, sophisticated investment strategies incorporating such assets require a strong commitment to education and training,” said Jack Snyder, Jr., National Sales Manager, Wirehouse and RIA Channel and Head of Retail Alternative Investments at First Eagle. “Our efforts to illuminate the potential benefits of the Credit Opportunities Fund’s investment approach and interval fund structure appear to have resonated with financial professionals—and with RIAs in particular. We are pleased to see the Fund continue to build momentum within the retail space.”
As a closed-end interval fund registered under the Investment Company Act of 1940, as amended, the Credit Opportunities Fund offers investors quarterly liquidity, giving the portfolio managers greater flexibility to invest in alternative income-generating assets like private credit and syndicated loans that historically have provided higher yields relative to traditional securities in exchange for reduced liquidity. At the same time, the Fund is offered for sale continuously at NAV, like an open-end mutual fund, and is available to a broad audience with no requirements that investors be accredited or qualified.
“The volatile, uncertain investment environment since the Fund’s launch has created numerous opportunities in the public and private credit markets for disciplined, research-driven managers,” said Chris Flynn, President of First Eagle Alternative Credit. “Through the Credit Opportunities Fund, we are pleased to leverage our team’s extensive experience across market cycles to capitalize on these opportunities as they emerge.”