Sound Point Capital Management, a global alternative credit manager, and Atlanta-based Skypoint Capital Advisors launched the Sound Point Alternative Income Fund (SAFTX), a multi-asset credit interval fund designed to provide greater access to a range of private and alternative credit strategies for individual investors.
SAFTX seeks to generate current income with attractive risk-adjusted returns by investing in a diversified range of private and alternative credit strategies managed by Sound Point across its $45 billion integrated credit platform. The fund will primarily focus on core middle market direct lending, complemented by private asset-based capital solutions and specialty finance, while retaining the flexibility to opportunistically allocate to liquid credit when relative value is compelling. SATFX’s investment strategy will seek to mitigate risk by allocating across a diversified range of credit asset classes backed by both contractual cash flows and hard and specialty financial assets, with an objective of loss avoidance and selectivity, principles that have defined Sound Point’s approach since its founding in 2008 across a range of market environments.
SAFTX will be managed and overseen by Sound Point’s experienced team of investment professionals including Tom Newberry, chief credit officer and executive chairman of direct lending; Gunther Stein, head and chief information officer of U.S. performing credit, and Jane Lawrence, U.S. CLO and senior floating rate portfolio manager.
“The core middle market continues to offer stronger structural protections and more attractive spreads than the increasingly crowded large-cap direct lending market,” Newberry said. “Our edge lies in our selectivity and discipline. We invest in only a small percentage of the opportunities we evaluate, while maintaining the ability to deploy capital opportunistically.”
Stein said, “Liquid credit plays an important role within the strategy, particularly during periods of market dislocation when relative value can shift rapidly. Our scale across performing credit and CLOs provides continuous insight into issuer fundamentals, sector dynamics and capital structures, enabling us to allocate capital with precision across markets. That flexibility enhances liquidity, supports risk management and complements the fund’s diversified private credit foundation.”
The interval fund structure provides quarterly liquidity through repurchase offers of at least 5% of outstanding shares, quarterly income distributions, daily NAV pricing, simplified 1099 tax reporting, a single layer of fees and a de novo portfolio without the potential for legacy credit issues. The fund will be available to registered investment advisors that custody with Charles Schwab and Fidelity and is also available for direct investment. It will initially offer I Shares (SAFTX) only but has been granted a multi-class exemption to offer other share classes in the future.
