First Eagle Investments has launched the First Eagle Real Estate Debt Fund, a closed-end interval fund offering individual investors access to residential real estate debt with the added benefit of REIT tax treatment. Managed by affiliate Napier Park Global Capital, the fund targets both private and public credit opportunities. 

The strategy focuses on cash-flow generating, short-duration assets, including residential transitional loans in the private market and mortgage-backed and credit-risk transfer securities in public markets. The structure aims to capitalize on reduced activity from traditional lenders amid regulatory headwinds. 

“Recognizing the regulatory headwinds facing conventional lenders that historically served this space, we see a durable opportunity for alternative credit firms like ourselves to provide much-needed capital to the residential real estate market and potentially generate attractive risk-adjusted returns and current income for our investors,” said Rajesh Agarwal, portfolio manager of the Real Estate Debt Fund   

This marks First Eagle’s, which is expected to close on a deal in the second half of 2025 to be majority-owned by Genstar Captial, third interval fund and Napier Park’s first since its acquisition by First Eagle in 2022. The new offering follows the launch of the First Eagle Tactical Municipal Opportunities Fund and joins the First Eagle Credit Opportunities Fund, which held $921 million in assets as of March 31.