Overview

EJF utilizes both a “top down” and “bottom up” investment philosophy.  Top down ideas are primarily driven by regulatory changes which can include legislative action or new rulemaking by regulators such as the Federal Reserve, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency or Securities and Exchange Commission. Bottom up investment philosophy includes detailed security analysis or company analysis by EJF’s team of approximately 30 investment professionals. These analyses often involve complex instruments requiring specific expertise such as structured products like CDOs or mortgage-backed securities.

Since the financial crisis, there have been continuous rule changes including government bailout programs such as the Troubled Asset Relief Program and Temporary Liquidity Guarantee Program, major legislation such as Dodd-Frank, industry regulations like Basel III, policy changes such as the Fed’s Small Bank Holding Company Policy Statement, directly impactful legislation such as the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 and the Tax Cuts and Jobs Act of 2017 (which created Qualified Opportunity Zones).  Each of these legislative acts created investment opportunities that drove a new or expanded thesis for EJF clients.

EJF matches clients needs with the duration, liquidity and other characteristics of the investment thesis.  Investments may be relatively liquid, such as securities in open-ended fund structures, or illiquid such as private equity or private credit investments in closed-ended fund structures. EJF seeks opportunities across the capital structure, including both debt and equity investments and the variations of each. We believe our broad perspective to the financial sector allows us to pursue a variety of opportunities.

More recently, the economic collapse caused by the novel coronavirus is having the greatest impact on markets since the financial crisis of 2008-2009.  The government is responding with massive stimulus from both monetary and fiscal programs that are even larger than the financial crisis programs.  EJF believes that this is an excellent environment for regulatory driven investment ideas in three main categories: structured products including real estate and asset backed securities; corporate credit of financial sector issuers and public equities of financial services firms.

Below we highlight a few of EJF’s strategies that we believe are timely in today’s market environment including: the EJF Debt Opportunities Fund LP, the EJF OpZone Fund I LP, the EJF Tactical Opportunities Fund LP, the EJF Financial Services Fund LP and the Rocade Capital Fund IV LP.

Select Strategies focused in banking or the broader financial services sector:

Fist strategy title

EJF Debt Opportunities Fund, LP

EJF OpZone Fund I LP

EJF Tactical Opportunities Fund LP

EJF Financial Services Fund LP

Rocade Capital Fund IV LP

EJF Debt Opportunities Fund, LP

EJF OpZone Fund I LP

EJF Tactical Opportunities Fund LP

EJF Financial Services Fund LP

Rocade Capital Fund IV LP

EJF Debt Opportunities Fund utilizes a catalyst driven approach to identify securities across the entire capital structure, primarily in companies focused in banking or the related financials sector.

Bank Debt Opportunities

EJF believes there are compelling sector trends for bank TruPS and subordinated debt, including regulatory changes that benefit smaller banks.

Special Situations

Invests across capital structures of specialty finance companies in U.S.

Opportunities in Monoline Insurers

EJF’s expertise in structured product along with our deep knowledge of the capital markets enables us to seek out investments that we believe have multiple catalysts for event driven returns.

To learn more or to share an investment opportunity, contact us.

Contact us

EJF OpZone Fund I LP is designed to invest in real estate projects located in Qualified Opportunity Zones (“QOZ”), which were created under the Tax Cuts and Jobs Act of 2017.

For more information on the EJF OpZone Fund I LP, please visit https://www.ejfopzone.com/.

What is a QOZ?

Qualified Opportunity Zones are areas designated by each of the 50 states and the District of Columbia and certified by the U.S. Department of the Treasury. Certain funds investing in these QOZs receive preferential tax treatment under the Tax Cuts and Jobs Act of 2017.

Potential Tax Benefits

Taxable gain deferral until year-end 2026.

Partial forgiveness on capital gain tax on original investment.

Forgiveness of fund investment tax liability on future capital gains (after 10 years).

Where are the QOZs?

Located in all U.S. states and territories including Washington, D.C. and Puerto Rico. Over 8,700 census tracts encompassing approximately 10% of the U.S. population.

To learn more or to share an investment opportunity, contact us.

Contact us

EJF Tactical Opportunities Fund LP seeks to take advantage of the market dislocation created by Covid-19 within the credit and equity markets by targeting securities expected to benefit from significant monetary and fiscal stimulus.  EJF intends to focus on senior credit instruments in the early stage of the crisis with the intention of moving down the credit curve as stimulus measures begin to work and the recovery takes hold.

Structured Product

Real estate backed and asset backed securities with historically wide spreads supported by ample collateral value.

Corporate Credit

Financial sector issuers with bonds trading well below par value at very attractive spreads.

Public Equities

Non-bank financial companies trading well below net asset value where EJF can constructively engage with managment to unlock shareholder value.

To learn more or to share an investment opportunity, contact us.

Contact

EJF Financial Services Fund is a fundamentals-driven equity strategy focused on the financial services sector.  The Fund capitalizes on market opportunities, including those which stem from regulatory changes within the financial services industry. 

Compelling Bank Valuations

Many US community bank valuations today trade near or below tangible book value, below levels seen at the bottom of the Global Financial Crisis in 2007-2008.

Strong Government Support & Healthy Bank Balance Sheets

EJF estimates $10 trillion of COVID-19 related government support via congressionally approved stimulus in addition to Federal Reserve liquidity facilities.

US bank capital levels as of 3/31/20 were the highest seen in 70 years, with an average of 9.5% tangible equity compared to 6.7% at the end of 2008.

US Bank M&A Activity

Long-term secular trend spurred by technology changes and deal economics. Although muted in the near-term due to the pandemic, EJF expects an acceleration of activity as an offset to a flat yield curve environment.

To learn more or to share an investment opportunity, contact us.

Contact

Rocade Capital, EJF’s litigation lending platform, provides capital to plaintiff law firms to pursue mass torts and other litigation.

What is Litigation Lending?

Private credit strategy that makes secured loans to plaintiff law firms pursuing mass tort litigation, including pharmaceutical, medical device and other product liability.

Market Opportunity

Considerable lending opportunity within the mass tort space creates demand for low leverage, high quality, high-yielding loans to established plaintiff law firms.

Why Rocade Capital?

Rocade Capital combines the expertise of an experienced law firm lending team with the institutional asset management platform of EJF Capital.

To learn more or to share an investment opportunity, contact us.

Contact

Overview

EJF utilizes both a “top down” and “bottom up” investment philosophy.  Top down ideas are primarily driven by regulatory changes which can include legislative action or new rulemaking by regulators such as the Federal Reserve, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency or Securities and Exchange Commission. Bottom up investment philosophy includes detailed security analysis or company analysis by EJF’s team of approximately 30 investment professionals. These analyses often involve complex instruments requiring specific expertise such as structured products like CDOs or mortgage-backed securities.

Since the financial crisis, there have been continuous rule changes including government bailout programs such as the Troubled Asset Relief Program and Temporary Liquidity Guarantee Program, major legislation such as Dodd-Frank, industry regulations like Basel III, policy changes such as the Fed’s Small Bank Holding Company Policy Statement, directly impactful legislation such as the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 and the Tax Cuts and Jobs Act of 2017 (which created Qualified Opportunity Zones).  Each of these legislative acts created investment opportunities that drove a new or expanded thesis for EJF clients.

EJF matches clients needs with the duration, liquidity and other characteristics of the investment thesis.  Investments may be relatively liquid, such as securities in open-ended fund structures, or illiquid such as private equity or private credit investments in closed-ended fund structures. EJF seeks opportunities across the capital structure, including both debt and equity investments and the variations of each. We believe our broad perspective to the financial sector allows us to pursue a variety of opportunities.

More recently, the economic collapse caused by the novel coronavirus is having the greatest impact on markets since the financial crisis of 2008-2009.  The government is responding with massive stimulus from both monetary and fiscal programs that are even larger than the financial crisis programs.  EJF believes that this is an excellent environment for regulatory driven investment ideas in three main categories: structured products including real estate and asset backed securities; corporate credit of financial sector issuers and public equities of financial services firms.

Below we highlight one of the strategies available to offshore investors.  For further information on our other offerings, please contact Investor Relations at InvestorRelations@ejfcap.com.

EJF Investments Ltd

EJF Investments Ltd (“EJFI”) is a closed‐end fund (symbol EJFI) that trades on the London Stock Exchange plc in the Specialist Fund Segment of the Main Market. EJFI seeks to generate attractive risk adjusted returns by investing in opportunities created by regulatory and structural changes impacting the financial services sector. It is anticipated that these opportunities will include structured debt and equity, loans, bonds, preference shares, convertible notes and private equity, in both cash and synthetic formats issued by entities domiciled in the US, UK and Europe mainland.

For more information on EJFI, please visit https://www.ejfi.com/.