Eagle Point utilizes wide ranging legal, credit and real estate expertise to make debt investments with multiple exit outcomes, each with desirable risk-adjusted return potential. 

Debt investments are typically structured either as an existing distressed loan acquisition, or a newly originated bridge loan or preferred equity investment.  Each investment has multiple paths to successful resolution and Eagle Point has a proven track record of executing both alternatives.

Distressed Acquisitions

Acquire fee simple title or a controlling interest in troubled properties at an attractive basis due to borrower or capital structure stress, where management and decision control can be assumed and a turnaround plan executed. These situations typically offer an attractive entry point relative to where stabilized or widely brokered deals trade and creates an asymmetric risk-return profile with a higher probability of success.

Loan Originations and Rescue Capital

Originate new senior debt, mezzanine debt or preferred equity to refinance existing debt or recapitalize/restructure an over-levered capital structure. This strategy typically adds more certainly around resolution and at a lower basis/more senior position, while avoiding an adversary litigation scenario. 

Loan Restructurings

Acquire existing sub-performing or non-performing loans, extend term, earn upfront fees and/or a borrower paydown. This leads to a lower cost basis with a borrower paying for a portion of costs and better loan terms (interest rate). Restructurings can include more collateral and credit enhancements and more certainty of outcome than the above two alternative scenarios.  This strategy can include more collateral and concessions from the borrower, including a confession of judgement and admitting to amounts due early in the investment period, which can mitigate foreclosure and enforcement risk.