First Eagle Credit Opportunities Fund Celebrates One-Year Anniversary

NEW YORK--()--First Eagle Investment Management, LLC (“First Eagle”) is pleased to mark the one-year anniversary of the First Eagle Credit Opportunities Fund (Ticker: FECRX). The Fund seeks to provide current income with a focus on delivering strong risk-adjusted returns over the long term by investing in a range of private and public credit assets—including direct lending, middle-market “club” loans, syndicated bank loans, asset-based loans and high yield bonds. In the year since its September 15, 2020, inception, the Credit Opportunities Fund returned 12.30%; as of August 31, 2021, its distribution yield was 7.14%.1

“We believe the Fund’s launch was fortunately timed,” said Christopher J. Flynn, President of First Eagle Alternative Credit. “While the Fund had been in the planning stages since early 2020, the Covid-related market dislocations that began in March allowed us to be patient in seeding the portfolio. Once we ramped up in September, there were ample opportunities to establish strong foundational positions that we believe have the potential to benefit our investors over the long run.”

The Credit Opportunities Fund is registered as a closed-end interval fund. Providing investors with daily purchase opportunities, monthly distributions when applicable and quarterly redemption windows, the interval fund structure allows the Fund’s portfolio managers greater flexibility to invest in alternative income-generating assets—such as private credit and syndicated loans—that historically have offered higher yields relative to traditional securities in exchange for reduced liquidity. With no requirements that investors be accredited or qualified and low minimum investments, this differentiated investment solution is available to retail investors often shut out of such opportunities.

“We are very excited to mark this milestone, especially given the strong inflows we have seen over the Fund’s first year,” said Jack Snyder, National Sales Manager, Wirehouse and RIA Channel, and Head of Retail Alternative Sales at First Eagle. “We believe this success is attributable to the broad accessibility of the strategy in a complex market, coupled with its robust historical performance and attractive relative yield and what we expect to be ongoing demand for alternative income-oriented strategies.”

Leveraging an institutional platform with decades of experience in direct lending and tradable credit across multiple market cycles, the Credit Opportunities Fund seeks to invest primarily in senior-secured, first-lien corporate credit, which may better mitigate downside compared with other income-oriented securities such as bonds and preferred and dividend-paying stocks. Further, the historically low correlation between alternative credit and traditional fixed income investments suggests the Fund also may serve as a diversifying complement to investors’ other portfolio holdings.


First Eagle Investment Management is an independent, privately owned investment management firm headquartered in New York with approximately $113 billion in assets under management as of June 30, 2021. Dedicated to providing prudent stewardship of client assets, the firm focuses on active, fundamental and benchmark-agnostic investing, with a strong emphasis on downside mitigation. Over a long history dating back to 1864, First Eagle has helped its clients avoid permanent impairment of capital and earn attractive returns through widely varied economic cycles—a tradition that is central to its mission today. The firm’s investment capabilities include equity, fixed income, alternative credit and multi-asset strategies. For more information on First Eagle, please visit For information on the Alternative Credit team at First Eagle, please visit







Expense Ratio°



3 Month








Inception Date

First Eagle Credit Opportunities Fund –
Class A FECAX (without load)






















First Eagle Credit Opportunities Fund –
Class A FECAX (with load)






First Eagle Credit Opportunities Fund –
Class I FECRX (without sales charge)










The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the fund’s short-term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor’s shares, when re- deemed may be worth more or less than their original cost. Past performance data through the most recent month end is available at or by calling 800.334.2143. “With load” performance for Class A Shares gives effect to the deduction of the maximum sales charge of 3.50%.

Management Fee Waived: Effective May 1, 2021, FEIM and FEAC have agreed to waive all management fees and subadvisory fees payable to them under the Management Agreement (defined in Prospectus) and Subadvisory Agreement (defined in Prospectus) until April 30, 2022 (the ‘‘Management Fee Waiver’’), resulting in an Adjusted Net Expense Ratio of 1.00% for Class A and 0.25% for Class I. The Management Fee Waiver is not revocable during its term and amounts waived pursuant to the Management Fee Waiver will not be subject to any right of future recoupment in favor of FEIM and FEAC. °The annual expense ratio is based on expenses incurred by the fund, as stated in the most recent prospectus. FEIM has contractually undertaken to waive and/or reimburse certain fees and expenses of the Fund so that the total annual operating expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, dividend and interest expenses relating to short sales, and extraordinary expenses, if any) (“annual operating expenses”) of the Class A and Class I shareholders are limited to 1.00% and 0.25%, respectively, of average net assets, respectively. This undertaking lasts until April 30, 2022, and may not be terminated during its term without the consent of the Board of Trustees. The Fund has agreed that each of Class A and Class I will repay FEIM for fees and expenses waived or reimbursed for the class provided that repayment does not cause annual operating expenses (after the repayment is taken into account) to exceed either: (1) 1.00% and 0.25% of the class’s average net assets, respectively; or (2) if applicable, the then-current expense limitations. Any such repayment must be made within three years after the date in which the Fund incurred the fee and/or expense. °°The Gross Expense Ratio includes an estimate of interest payments the Fund expects to incur in connection with its use of leverage of 1.56% and Acquired Fund Fees and Expenses (‘‘AFFE’’), which are fees and expenses incurred by the Fund in connection with its investments in other investment companies, which are excluded from the expense waiver. °°°The Adjusted Expense Ratio of 0.25% for Class I and 1.00% for Class A excludes certain investment expenses, such as interest expense from borrowings and repurchase agreements and dividend expense from investments on short sales, incurred directly by the Fund or indirectly through the Fund’s investments in underlying First Eagle Funds (if applicable), none of which are paid to First Eagle. The information is not intended to provide and should not be relied on for accounting or tax advice. Any tax information presented is not intended to constitute an analysis of all tax considerations.

The minimum initial investment for Class A Shares is $2,500 per account. The minimum subsequent investment amount for Class A Shares is $100. The minimum initial investment for Class I Shares is $1 million per account. There is no minimum subsequent investment amount for Class I Shares.

The Credit Opportunities Fund is an Interval Fund, a type of fund that, in order to provide liquidity to shareholders, has adopted a fundamental investment policy to make quarterly offers to repurchase between 5% and 25% of its outstanding Common Shares at net asset value (“NAV”). Subject to applicable law and approval of the Board of Trustees for each quarterly repurchase offer, the Fund currently expects to offer to repurchase 5% of the Fund’s outstanding Common Shares at NAV on a quarterly basis.

The Credit Opportunities Fund’s Common Shares are not listed for trading on any national securities exchange, have no trading market and no market is expected to develop.

Investors should consider investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the Funds and may be obtained by visiting our website at or calling us at 800.334.2143. Please read our prospectus carefully before investing. Investments are not FDIC insured or bank guaranteed and may lose value.

Risk Disclosures

An investment in the First Eagle Credit Opportunities Fund (the “Fund”) involves a number of significant risks. Before you invest, you should be aware of various risks, including those described below. For a more complete discussion of the risks of investing in the Fund, see the Fund’s prospectus under the heading, “Principal Risks of the Fund.”

All investments involve the risk of loss of principal. The Fund may not be able to pay distributions or may have to reduce distribution levels if the income and/or dividends the Fund receives from its investments decline.

Investment in private and middle-market companies is highly speculative and involves a high degree of risk of credit loss, and therefore the Fund’s securities may not be suitable for someone with a low tolerance for risk. The Fund is required to rely on the ability of the First Eagle Alternative Credit’s investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies.

Below investment grade securities or comparable unrated instruments may be subject to greater risks than securities or instruments that have higher credit ratings, including a higher risk of default, and the Fund might have difficulty selling them promptly at an acceptable price.

Investments in loans potentially expose the Fund to the credit risk of the underlying borrower, and in certain cases, of the financial institution. The Fund’s ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower. Even investments in secured loans present risk, as there is no assurance that the collateral securing the loan will be sufficient to satisfy the loan obligation. The market for certain loans is expected to be illiquid and the Fund may have difficulty selling them. In addition, loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price.

Investments in debt securities and other obligations of companies that are experiencing significant financial or business distress involve a substantial degree of risk, including a material risk that the issuer will default on the obligations or enter bankruptcy. The level of analytical sophistication, both financial and legal, necessary for successful investment in distressed assets is unusually high. There is no assurance that First Eagle Alternative Credit will correctly evaluate the value of the assets collateralizing the Fund’s investments or the prospects for a successful reorganization or similar action in respect of any company.

Diversification does not guarantee investment returns and does not eliminate the risk of loss.

The First Eagle Credit Opportunities Fund is offered by FEF Distributors, LLC, a subsidiary of First Eagle Investment Management, LLC. First Eagle Investment Management, LLC provides advisory services.

FEF Distributors, LLC (“FEFD”) distributes First Eagle products; it does not provide services to investors. As such, when FEFD presents a strategy or product to an investor, FEFD and its representatives do not determine whether the investment is in the best interests of, or is suitable for, the investor. Investors should exercise their own judgment and/or consult with a financial professional prior to investing in any First Eagle strategy or product.

First Eagle Investment Management is the brand name for First Eagle Investment Management, LLC and its subsidiary investment advisers. First Eagle Alternative Credit is the brand name for those subsidiary investment advisers engaged in the alternative credit business.

© 2021 First Eagle Investment Management, LLC. All rights reserved.

1 Past performance is not indicative of future results. Class I shares (without sales charge). Distribution yield is based on the fund-level composite of all the share classes. Distribution yield indicates the annual yield received if the most recent composite Fund monthly distribution paid was the same for an entire year. The yield represents a distribution and does not represent the total return of the Fund. Because distribution yield is annualized from a single month’s distribution, no investor actually received the yield in a given year. The yield is calculated by annualizing the most recent composite monthly distribution paid by the Fund and dividing it by the Fund’s average month-to-date NAV from the as-of date.


Mount and Nadler
Hedda Nadler

Release Summary

The First Eagle Credit Opportunities Fund (FECRX), a closed-end interval fund that invests in a range of private and public credit assets, turns one.


Mount and Nadler
Hedda Nadler