New York-based Sound Point Capital has raised $1.1bn (£0.8bn) at the first close of Strategic Capital Fund III (SCF III), more than double the amounts raised for its predecessors.
Sound Point is a global alternative credit manager with more than $44bn in assets under management.
SCF III seeks to originate first-lien capital solutions for US corporate borrowers. The strategy provides short-maturity loans backed by collateral that can be converted to cash relatively quickly, including accounts receivable, equipment and inventory.
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The $1.1bn raised for SCF III exceeds both its first and final close targets of $500m and $1bn, respectively.
It also exceeds the $492m and $514m raised for its predecessor funds, SCF I and SCF II.
Sount Point is targeting a final close of SCF III by the end of the year, with a hard cap of $1.5bn.
SCF III has received commitments from a wide range of institutional investors including insurance companies, public and private pension funds, asset managers and family offices based across North and Latin America, Europe, and Australia.
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Notably, over 50 per cent of first close commitments came from insurance companies. Additionally, the fund received a re-up rate of 100 per cent from institutional investors in its predecessor, SCF II, with several investors significantly upsizing their commitments.
“We are delighted and grateful for the support that Strategic Capital Fund III has received from investors at its first close,” said Stephen Ketchum, founder and chief executive of Sound Point. “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 favourable market opportunities for this strategy.”
