Sound Point Capital Management, a global alternative credit manager, held the final close of Strategic Capital Fund III with $1.5 billion in total capital commitments, reaching the fund’s hard cap after being substantially oversubscribed.
With the final close complete, SCF III is fully capitalized and positioned to deploy capital across asset-backed, first-lien private credit investments for U.S. corporate borrowers seeking bespoke or transitional financing. The fund expands the scale of Sound Point’s Capital Solutions platform, enabling the firm to structure short-duration investments across a wide range of market conditions.
“SCF III reflects the durability of Sound Point’s platform and our ability to scale strategies that are built for changing credit markets,” Stephen Ketchum, founder and CEO of Sound Point, said. “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.”
SCF III leverages Sound Point’s integrated credit platform to originate loans secured by high-quality, cash-generative collateral, including accounts receivable, equipment, inventory and other asset-based assets.
“With SCF III fully capitalized, our focus is on deploying capital where structure, collateral and duration are thoughtfully aligned,” Marc Sole, deputy chief investment officer, portfolio manager and co-head of the capital solutions group, said.
The completion of SCF III provides Sound Point with increased flexibility to respond to borrower demand for customized financing solutions.
“With check sizes averaging $150 – 300 million, we have become a solutions provider for borrowers seeking transitional capital, while maintaining a highly selective and disciplined investment process,” Morgan O’Neill, portfolio manager and co-head of the capital solutions group, said.
