Sound Point Capital Management, LP, a global alternative credit manager with more than $44 billion in assets under management1, announced the first close of Strategic Capital Fund III with $1.1 billion in capital commitments, “exceeding its first and final close targets of $500 million and $1 billion, respectively.”
Sound Point is targeting a final “close of SCF III by year-end 2025 with a hard cap of $1.5 billion.”
To date, SCF III has received commitments from a diverse range of sophisticated institutional investors, “including insurance companies, public and private pension funds, asset managers and family offices based across North and Latin America, Europe, and Australia.”
Notably, over 50% of first close commitments “came from insurance companies.”
Additionally, the Fund received “a re-up rate of 100% from institutional investors in its predecessor, Strategic Capital Fund II, with several investors significantly upsizing their commitments.”
The $1.1 billion in commitments raised to date “represents double the amounts raised for each of SCF III’s predecessors, SCF I and SCF II, which closed in 2018 and 2022, respectively, with $492 million and $514 million in commitments.”
SCF III seeks to originate proprietary, first-lien “capital solutions for primarily U.S. corporate borrowers requiring transitional capital.”
Leveraging the full scale of Sound Point’s large and diversified credit platform, the strategy provides “short-maturity loans backed by collateral that can be converted to cash relatively quickly, including accounts receivable, equipment, inventory and other high-quality assets.”
Since the strategy’s inception, Sound Point has “originated more than $4.4 billion of investment activity, of which more than 70% is investment grade rated.”
The AUM referenced here is based “on Sound Point’s assets under management as of May 31, 2025, and also includes SCF III’s first close commitments of $1.1 billion and a CLO priced on June 3, 2025.”
Sound Point is an alternative asset management firm “founded in 2008 with particular expertise in credit strategies.”
Based in New York City, with offices in London, Greenwich, West Palm Beach and San Francisco, the firm “manages money on behalf of institutional investors including pensions, foundations, insurance companies, wealth management firms and family offices.”
Sound Point’s strategies span the spectrum “of liquid and illiquid credit alternatives and include funds and managed accounts focused on leveraged loans, special situations, distressed debt, structured credit, direct lending and commercial real estate.”
Sound Point currently manages “$44+ billion1 of assets and was founded by Stephen J. Ketchum, who is the controlling shareholder.”
Five principals of Stone Point Capital LLC, “as well as Blue Owl GP Stakes, a division of Blue Owl Capital Inc. [NYSE: OWL], and Assured Guaranty Ltd, are strategic investors in their business.”
