EJF has a long history of investing across the capital structure of financial services companies.
EJF’s core investment strategies have evolved overtime in tandem with the everchanging regulatory landscape. 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. EJF’s 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 product like CDOs or mortgage-backed securities.
Click on the strategies below to find out more:
Private Equity/Private Credit
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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/.