Eagle Point Enhanced Income Trust (the “Fund” or “Enhanced Income”) is a closed-end management investment company that is registered under the Investment Company Act of 1940 that operates as an interval fund. 

Our primary investment objective is to generate high current income, with a secondary objective to generate capital gains. The Fund was designed as a differentiated, multi-credit evergreen offering seeking to produce returns by investing across all Eagle Point core competencies. The Fund seeks to invest in high income-oriented and overlooked areas of credit, including Portfolio Debt Securities (“PDS”), Strategic Credit (including Regulatory Capital Relief (“RCR”)) and Collateralized Loan Obligations (“CLOs”) investment strategies.

Portfolio Debt Securities. We define “Portfolio Debt Securities” primarily as debt and preferred equity securities or instruments issued by funds and investment vehicles, such as Business Development Companies (BDCs), registered closed-end investment companies, unregistered private funds, Real Estate Investment Trusts (REITs), and sponsors of such vehicles, to finance a portion of their underlying investment portfolios. 

Strategic Credit. Strategic Credit investments may include, among other instruments, RCR investments, asset-backed securities that are collateralized by various types of underlying credit obligations and/or other assets, including corporate loans/bonds, fund financing facilities, automobile and equipment loans/leases, corporate receivables, mortgages, and consumer loans, among other types of assets. RCR investments involve various types of credit instruments that enable a bank or other issuers to transfer the credit risk associated with a pool of underlying obligations (or “reference assets”) to investors, such as the Fund, in order to obtain regulatory capital relief and/or risk relief on that portfolio.

CLO Equity and Junior Debt Securities. CLO Equity and Junior Debt Tranches of Collateralized Loan Obligations, or “CLOs,” that are collateralized by a portfolio consisting primarily of U.S. first lien, floating rate senior secured loans with a large number of distinct underlying borrowers across various industry sectors and are typically rated below investment grade. CLOs are pooled investment vehicles comprised primarily of senior secured loans.

View our Offering Materials.

In addition, the Fund seeks to enhance its return through the use of leverage. Leverage magnifies the risk of loss on the Fund's investments. 

Portfolio Debt Securities, CLOs, collateralized fund obligations and other structured finance securities are generally backed by a pool of credit-related assets that serve as collateral. Accordingly, such securities present risks similar to those of other types of credit investments, including default (credit), interest rate and prepayment risks. In addition, such may be governed by a complex series of legal documents and contracts, which increases the risk of dispute over the interpretation and enforceability of such documents relative to other types of investments. There is also a risk that the trustee of a CLO does not properly carry out its duties to the CLO, potentially resulting in loss to the CLO. CLOs are also inherently leveraged vehicles and are subject to leverage risk.