SCHEDULE 13D/A: Eagle Point Credit Management Reduces Stake in Carlyle Credit Income Fund Preferred Shares

Eagle Point Credit Management LLC has filed an amended Schedule 13D, disclosing a reduced beneficial ownership of 21.18% in Carlyle Credit Income Fund's Preferred Shares following a series of sales.

Summary

• Eagle Point Credit Management LLC (EPCM) beneficially owns 446,538 Series A Preferred Shares of Carlyle Credit Income Fund, representing approximately 21.18% of the outstanding preferred shares.
• EPCM, a registered investment adviser, holds these shares for investment purposes on behalf of various private funds and separately managed accounts.
• Since its last Schedule 13D amendment on May 22, 2025, EPCM engaged in multiple secondary market sales of Preferred Shares between May 23, 2025, and May 30, 2025.
• The sales occurred at various market prices ranging from $25.30 to $25.59 per Preferred Share.
• EPCM reserves the right to increase or decrease its ownership of the Preferred Shares over time based on ongoing analysis of the investments.
• The funds used for the acquisition of these shares originated from each applicable Account's available investment capital.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the disclosed sales of Preferred Shares by a significant beneficial owner, which could imply a reduction in conviction or portfolio rebalancing, potentially impacting investor sentiment for the issuer.

Positives

• Eagle Point Credit Management LLC maintains a significant beneficial ownership stake of 21.18% in Carlyle Credit Income Fund's Preferred Shares, indicating continued investment interest.
• The shares are held for investment purposes, suggesting a strategic, long-term view, although the recent sales indicate portfolio adjustments.

Negatives

• Eagle Point Credit Management LLC has reduced its beneficial ownership in Carlyle Credit Income Fund's Preferred Shares through a series of sales between May 23, 2025, and May 30, 2025.
• The sales, totaling a significant number of shares, could be interpreted as a reduction in conviction or a portfolio rebalancing by a major holder.

Risks

• A significant holder, Eagle Point Credit Management LLC, has recently reduced its stake, which could signal a lack of confidence or a strategic shift that might negatively impact investor sentiment for Carlyle Credit Income Fund's Preferred Shares.
• Future sales by Eagle Point Credit Management LLC could exert downward pressure on the price of the Preferred Shares.

Future Outlook

Eagle Point Credit Management LLC, on behalf of the Accounts, reserves the right to increase or decrease its ownership of the Preferred Shares over time, based on ongoing investment analysis.

Management Comments

• "EPCM caused the Accounts to acquire the Preferred Shares they hold for investment purposes and will continue to analyze such investments on an ongoing basis."
• "EPCM, on behalf of the Accounts, reserves the right to increase or decrease the Accounts' ownership of the Preferred Shares over time."

Industry Context

This Schedule 13D amendment reflects a routine disclosure by a significant institutional investor, Eagle Point Credit Management LLC, regarding its beneficial ownership in a publicly traded fund. Such filings are common as large investors adjust their portfolio holdings, providing transparency into major ownership changes within the financial services sector, particularly for closed-end funds or similar investment vehicles.

Comparison to Industry Standards

• This document is a standard Schedule 13D filing, which is a regulatory requirement for investors acquiring more than 5% of a company's voting shares. It does not contain financial performance metrics or project results that would allow for a direct comparison to industry benchmarks or specific comparable companies' operational performance.
• The disclosed beneficial ownership percentage of 21.18% is a substantial stake, indicating a significant position for an institutional investor in a fund's preferred shares, which is not uncommon for specialized credit managers like Eagle Point Credit Management.

Legal Proceedings

• None of the Disclosed Parties (Eagle Point Credit Management LLC and related entities/individuals) have been convicted in any criminal proceeding (excluding traffic violations or similar misdemeanors) during the past five years.
• None of the Disclosed Parties were a party to a civil proceeding of a judicial or administrative body of competent jurisdiction that resulted in a judgment, decree, or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws during the past five years.

Related Party Transactions

• The document describes the ownership and governance structure of Eagle Point Credit Management LLC, including its ultimate ownership by Eagle Point Holdings LP and the roles of EP Holdings GP, EP-II LLC, and Stone Point Capital LLC. These are internal relationships of the reporting person, not related party transactions with the issuer, Carlyle Credit Income Fund.

Stakeholder Impact

• Shareholders of Carlyle Credit Income Fund, particularly holders of Preferred Shares, may view the reduction in stake by a significant institutional investor like Eagle Point Credit Management LLC as a negative signal, potentially influencing their investment decisions.
• The market price of the Preferred Shares could be affected by the perception of a major holder reducing its position.

Next Steps

• Eagle Point Credit Management LLC will continue to analyze its investments in Carlyle Credit Income Fund's Preferred Shares.
• EPCM reserves the right to adjust its ownership position (increase or decrease) in the Preferred Shares in the future.

Key Dates

Recommendation

Keywords

Schedule 13D, Beneficial Ownership, Preferred Shares, Carlyle Credit Income Fund, Eagle Point Credit Management, Investment Adviser, SEC Filing, Share Sales, Institutional Investor