SCHEDULE: Eagle Point Credit Management Reduces Stake in Carlyle Credit Income Fund Preferred Shares to 20.04%

Eagle Point Credit Management LLC has reduced its beneficial ownership in Carlyle Credit Income Fund's Preferred Shares to 20.04% through a series of secondary market sales.

Summary

• Eagle Point Credit Management LLC (EPCM) filed an Amendment No. 11 to its Schedule 13D regarding its beneficial ownership of Preferred Shares in Carlyle Credit Income Fund.
• EPCM, acting as an investment adviser for certain private funds and separately managed accounts (collectively, the "Accounts"), beneficially owns an aggregate of 422,634 Series A Preferred Shares.
• This ownership represents approximately 20.04% of all outstanding preferred shares of Carlyle Credit Income Fund.
• Since the previous Schedule 13D amendment filed on June 2, 2025, the Accounts engaged in multiple secondary market sales of Preferred Shares.
• Sales transactions occurred between June 2, 2025, and July 2, 2025, with prices per Preferred Share ranging from $25.57 to $25.69.
• The funds used for the acquisition of these Preferred Shares originated from each applicable Account's available investment capital.
• EPCM acquired the Preferred Shares for investment purposes and retains the right to adjust the Accounts' ownership over time.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing detailing a reduction in a significant investor's stake. While a reduction could be seen negatively, the sales occurred at favorable prices, indicating active and potentially profitable portfolio management rather than distress.

Positives

• Sales of Preferred Shares occurred at prices ranging from $25.57 to $25.69, which are at or slightly above the typical $25 par value for preferred shares, indicating favorable transaction prices.
• The transactions reflect active portfolio management by Eagle Point Credit Management LLC, aligning with its stated investment purpose.

Negatives

• The reduction in beneficial ownership by a significant holder like Eagle Point Credit Management LLC could be interpreted by some investors as a less bullish signal, although it is part of routine portfolio adjustments.

Future Outlook

Eagle Point Credit Management LLC will continue to analyze its investments in Carlyle Credit Income Fund Preferred Shares on an ongoing basis and reserves the right to increase or decrease its ownership over time.

Industry Context

This filing reflects a routine disclosure of a significant investor's position changes in a closed-end fund's preferred shares. Such adjustments are common in active portfolio management within the credit income fund sector, where specialized investment advisers like Eagle Point Credit Management manage portfolios for their clients.

Stakeholder Impact

• Shareholders of Carlyle Credit Income Fund: A significant holder reducing its stake could lead to questions about the fund's outlook, but the sales appear to be part of routine portfolio management.
• Eagle Point Credit Management LLC's clients (Accounts): The sales represent active management of their investments, potentially realizing gains.

Next Steps

• Eagle Point Credit Management LLC will continue to analyze its investment in the Preferred Shares.
• Eagle Point Credit Management LLC may increase or decrease its ownership of the Preferred Shares over time.

Key Dates

Recommendation

Keywords

Carlyle Credit Income Fund, Eagle Point Credit Management, Preferred Shares, Schedule 13D, Beneficial Ownership, Investment Adviser, Secondary Market, Fund Management, SEC Filing