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EJF Capital Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

EJF Capital LLC is an investment advisory firm with more than $13 billion under management (AUM). It currently manages a total of 92 pooled investment vehicles, six of which are hedge funds. The firm currently employs 30 advisors.

It's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible to accredited investors. If you're looking for trusted and comprehensive support in managing your own finances, consider speaking to a professional financial advisor.

EJF Capital Background

EJF Capital is an alternative asset management firm with headquarters in Arlington, Virginia, outside of Washington D.C. EJF is an employee-owned firm. The firm manages assets across a wide variety of alternative asset strategies that specialize in the financial industry. The firm was founded in 2005 by Emanuel J. Friedman and Neal Wilson, along with a small team professionals from Friedman, Billings, Ramsey Group, Inc. (FBR). The firm and its subsidiaries have offices across the globe, in Arlington, Virginia; London, England; and Shanghai, China.

Before launching the firm, Friedman was the co-founder and CEO of FBR for more than 15 years. He has more than four decades of experience in the U.S securities industry. Wilson was a manager at FBR and had served as a branch chief with the SEC in Washington, D.C.

Friedman is EJF Capital's principal owner and co-CEO and owns approximately 61%. Wilson is co-CEO and owns approximately 19% of the firm. Other employees own approximately 20%.

EJF provides discretionary investment advisory services to pooled investment vehicles and single-investor funds. The firm serves as the manager for the funds and is responsible for the funds' trading and other day-to-day activities. In addition to its funds, the firm has separately managed account (SMA) clients and fund investors that include but are not limited to the following: foundations, trusts, estates, IRAs, retirement plans, funds of funds, endowments, pensions, profit-sharing plans, business entities, sovereign wealth funds, high-net-worth individuals and family offices. The minimum investment amount for investors in any of the funds is generally $100,000. In regards to the offshore funds, the minimum investment is mandated by law to be $100,000. There are different minimum investment amounts for other kinds of accounts and the firm and its affiliates reserve the right to waive the minimum at their discretion.

EJF Capital Investment Philosophy

EJF Capital has a variety of strategies, one or more of which is used for its portfolios: Fixed-Income Strategy, Public Equity Strategies, Private Equity Strategies, Non-Marketable Loan Strategies and Real Estate Strategies.

The Fixed-Income Strategy is designed to target attractive performance returns and produce long-term capital appreciation, or increase in value of assets, through direct and indirect investments in private and public debt markets. It uses debt, equity and hybrid investments in public and privately held companies.

The Public Equity Strategies are designed to pursue absolute returns, and achieve medium- to long-term capital appreciation from investments. The firm uses an equity long-short strategy for funds.

The Private Equity Strategies focus on equity and warrants; debt, hybrid debt securities and collateralized debt obligations; mortgage servicing rights; real estate-related loans and leases as well as cash and short-term investments.

The Non-Marketable Loan Strategies seek to earn interest income by providing financing to plaintiff law firms participating in mass tort litigation (actions brought against one or a few corporate defendants by a large number of people injured on a large scale) or similar litigation.

The Real Estate Strategies seek to invest in a wide variety of real estate and real estate-related investment opportunities.

Of course, all current and potential clients should be aware that no investment strategy can guarantee against risk of loss.

Largest Hedge Funds Managed by EJF Capital

EJF Debt Opportunities Master Fund, LP

  • AUM: $3,798,471,541
  • Minimum: $500,000
  • Beneficial Owners: 282

EJF Debt Opportunities Master Fund II, LP

  • AUM: $1,283,976,564
  • Minimum: $1 million
  • Beneficial Owners: 28

EJF Financial Services Fund, LP

  • AUM: $159,542,462
  • Minimum: $500,000
  • Beneficial Owners: 48

EJF Income Fund Offshore, Ltd.

  • AUM: $28,581,555
  • Minimum: $200,000
  • Beneficial Owners: 116

EJF Select Master Fund, SPC

  • AUM: $721,511
  • Minimum: $0
  • Beneficial Owners: 3

Fees at EJF Capital

Clients typically pay an asset-based management fee for EJF advisory services. They also may pay a performance-based fee, usually at the end of the year and based on a percentage of the increase in the value of each client's investment.

For the funds, EJF is the investment advisor responsible and charges a maximum management fee of 2% based on AUM as well as a maximum performance-based fee of 20% in excess of the fund's profits, or 25% in excess of the fund's profits above a stated return amount. EJF Capital may agree to adjust and/or waive negotiated fees for a particular client in specific cases. Performance-based fees are negotiable.

Certain fund investors in particular asset classes of funds are subject to additional up-front fees of up to 2.5%, as well as ongoing fees of up to 0.5%, per year.

Beyond this, other additional fees and expenses may apply - including but not limited to registration fees, maintenance fees, certain taxes and regulatory expenses - so it is imperative that potential and existing clients read the offering documents carefully and reach out about specific fees charged to their fund.

The firm may also charge other fees for separately managed accounts (SMAs), wrap fee programs, etc. - so it is important to consult the firm about those services in particular.

What to Watch Out For

Again, it's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible only to accredited investors. Such investors differ from retail investors or individual investors, who might be taking a more DIY approach or enlisting the services of a financial advisor

Within the past 10 years, EJF Capital has not undergone any disciplinary or legal action deemed material to a client’s evaluation of its business integrity. That said, as an SEC-registered investment manager, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times. You can view its latest Form ADV on the official website of the Securities & Exchange Commission (SEC).

Becoming a Client of EJF Capital

If you are an accredited investor and wish to become a client of EJF Capital, you can visit the firm's website or call (703) 875-9121.

Investing Tips

  • Whether you are an accredited or sophisticated investor or not, it never hurts to consult a professional to make sure you're doing everything you can to manage your finances so that they can work for you. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with financial advisors in just five minutes. If you're ready to connect with local advisors, get started now
  • It's never too early - or too late, for that matter - to start investing. In addition to connecting you with expert advisors, SmartAsset also has various tools to help you get a snapshot of the numbers right now. Take a look at our free investment calculator for a sense of how much a particular investment might be worth as well as its growth over time.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research