First Eagle Investments has launched the First Eagle Real Estate Debt Fund, managed by Napier Park Global Capital, a First Eagle company. The Fund aims to deliver steady income and risk-adjusted returns by investing in both private and public real estate debt, with a special focus on residential real estate.
The Fund is structured as a closed-end interval fund and plans to elect taxation as a real estate investment trust (REIT). This setup offers investors potential tax advantages within a flexible investment structure.
Rajesh Agarwal, Portfolio Manager of the Fund, highlighted key market drivers: “Long-term trends like demographic growth, a housing supply shortage, and ongoing financing needs create strong opportunities in residential real estate. With traditional lenders facing regulatory challenges, alternative credit providers like us can fill this gap and deliver attractive returns and income.”
The Fund targets cash-flowing, short-duration assets across residential lending markets. It offers access to private credit opportunities such as residential transitional loans—short-term financing for home acquisitions and renovations—and land-banking deals that help homebuilders manage land inventory.
On the public credit side, the Fund plans to invest in structured securities backed by mortgage loans, including agency and non-agency mortgage-backed securities and credit-risk transfer securities.
Jon Dorfman, Managing Principal and CIO of Napier Park, noted, “US housing prices remain high despite rising mortgage rates. This reflects a structural market shift since the global financial crisis, worsened by Covid-19 disruptions. It has created a lasting investment opportunity in residential real estate credit for experienced capital providers like Napier Park.”
Frank Riccio, Head of US Wealth Solutions at First Eagle, added, “This Fund offers investors a way to access the residential real estate debt market, a large and diverse segment beyond traditional corporate lending.
Its REIT tax status and interval fund structure make it a compelling choice for advisors seeking current income for clients. It also expands real estate exposure beyond typical equity REITs and commercial real estate debt.”
The Real Estate Debt Fund is First Eagle’s third interval fund and the first managed by Napier Park, which First Eagle acquired in 2022. It joins the First Eagle Tactical Municipal Opportunities Fund and the First Eagle Credit Opportunities Fund, which manages about $921 million in assets as of March 31, 2025.
First Eagle Investments is a privately owned firm based in New York. It manages approximately $152 billion in assets as of March 31, 2025, focusing on active, fundamental investing with an emphasis on protecting clients from downside risks.
Read more:
