Ellington Credit enters new management agreement with performance fee; CLO portfolio rises to $85M

Ellington Credit Co

New management agreement effective July 1: base fee switches from 1.50% of Shareholders' Equity to 1.50% of Net Asset Value.
Performance fee introduced at 17.5% of quarterly Pre-Fee Net Investment Income above 2% hurdle (8% annual); fully waived through 2024.
CLO portfolio grew to $85M as of June 24, 2024, from $45.1M at March 31, 2024, accelerating shift from agency MBS.
Performance fee calculated per quarter with no clawback or carryforward, potentially incentivizing higher risk or leverage.
Board continues strategic transformation to CLO focus and conversion to a closed-end investment company.

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