Sound Point Capital Management has raised $1.5bn (£1.12bn) at the final close for its third asset-backed private credit strategy.
The $45bn New York-headquartered alternative asset manager said the Strategic Capital Fund III (SCF III) reached its hard cap after being oversubscribed.
SCF III deploys capital across asset-backed, first-lien private credit investments for US corporate borrowers. The fund can structure short-duration investments across a range of market conditions, with ticket sizes of $150m to $300m.
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“SCF III reflects the durability of Sound Point’s platform and our ability to scale strategies that are built for changing credit markets,” said Stephen Ketchum, founder and chief executive of Sound Point. “As lending continues to migrate away from traditional balance sheets, we believe platforms with structuring expertise, underwriting discipline, and scale are best positioned to serve borrowers and investors alike.”
The final close comes after Sound Point Capital raised $1.1bn at the first close for SCF III, which it said at the time was more than double the amount raised for its previous vintages.
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According to the firm, since the inception of its capital solutions strategy, Sound Point has originated more than $4.7bn of deal commitments.
“With check sizes averaging $150–300m, we have become a solutions provider for borrowers seeking transitional capital, while maintaining a highly selective and disciplined investment process,” added Morgan O’Neill, portfolio manager and co-head of the capital solutions group.
