Sound Point Capital Management, an alternative credit manager with over $44 billion in assets, announced the first close of Strategic Capital Fund III (SCF III) with $1.1 billion in commitments, exceeding both its initial and final close targets. The fund aims for a year-end 2025 final close with a target capitalization of $1.5 billion.
Investors include insurance companies, pension funds, asset managers, and family offices from the Americas, Europe, and Australia, with insurance firms accounting for over half the commitments. SCF III’s fundraising totals are double those of prior funds, SCF I and II.
The fund provides proprietary, short-maturity loans primarily to U.S. corporations, secured by assets such as accounts receivable and equipment. Since its inception, Sound Point has originated more than $4.4 billion in investments, with over 70% rated investment grade.
KEY QUOTES:
“Borrowers needing transitional capital are increasingly turning away from commercial banks and towards firms like Sound Point for reliable, tailored financing solutions.”
Marc Sole, Deputy Chief Investment Officer of Sound Point and Co-Portfolio Manager of the Capital Solutions Group, which manages the fund
“We owe our track record in part to our originations, enabling our team to continue to capitalize on long term strategy tailwinds, like banks moving away from this type of lending.”
Morgan O’Neill, Co-Portfolio Manager of the Capital Solutions Group
“We are delighted and grateful for the support that Strategic Capital Fund III has received from investors at its first close. We believe the Sound Point platform is perfectly suited to generate an attractive pipeline of alpha-generating asset-backed loans. The strong reception of SCF III, particularly from existing investors, is testament to this and we intend to deploy our investors’ capital to take advantage of favorable market opportunities for this strategy.”
Stephen Ketchum, Founder and Chief Executive Officer of Sound Point
