Firm taps demand for diversified Private Credit exposure, Bespoke Structuring, Asset-Based Underwriting

Sound Point Capital Management, LP (“Sound Point”), a leading global alternative credit manager with more than $44 billion in assets under management¹, today announced the first close of Strategic Capital Fund III (“SCF III” or “the Fund”) with $1.1 billion in capital commitments, exceeding both 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 (“SCF 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 bespoke, 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.

“Borrowers needing transitional capital are increasingly turning away from commercial banks and towards firms like Sound Point for reliable, tailored financing solutions,” said Marc Sole, Deputy Chief Investment Officer of Sound Point and Co-Portfolio Manager of the Capital Solutions Group, which manages the Fund.

“We owe our track record in part to our originations, enabling our team to continue to capitalize on long term strategy tailwinds, like banks moving away from this type of lending,” added Morgan O’Neill, Co-Portfolio Manager of the Capital Solutions Group.

“We are delighted and grateful for the support that Strategic Capital Fund III has received from investors at its first close,” added Stephen Ketchum, Founder and Chief Executive Officer 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 favorable market opportunities for this strategy.”

Notes to Editors:

About Sound Point Capital Management, LP

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 top-tier 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 our business. For more information, please visit Sound Point's website at www.soundpointcap.com

General Legal Disclaimer and Material Risk Factors:

Provided for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any securities. This information does not constitute investment, tax, or legal advice by Sound Point nor an opinion or recommendation regarding the appropriateness of any investment. Forward-looking statements are subject to risks and uncertainties, and actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Past performance is not indicative of future results. This material has been prepared for distribution in the United States. Unauthorized dissemination, distribution, disclosure or other use of the contents of this press release is strictly prohibited and may be unlawful.

Except where otherwise indicated herein, the information provided is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of the hereof. Sound Point is registered as an investment adviser with the US Securities and Exchange Commission (the "SEC"). Sound Point’s Form ADV, Parts 1A and 2A, is publicly available on the SEC's website at http://www.adviserinfo.sec.gov. Part 2B is available upon request. Being a “registered investment adviser” or describing Sound Point as being “registered” does not imply a certain level of skill or training.

AUM figures provided are 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. Firm-wide AUM does not include redemptions received or liquidations that may be in effect after May 31, 2025. Firm-wide AUM, where relevant, includes committed capital to discretionary draw-down vehicles that have not yet been drawn, entities that are not open to new investors and/or are in the process of winding down and represents the closed total commitment of all loans managed by Sound Point Commercial Real Estate Credit as of May 31, 2025, including inherited portfolios managed that were originated by another manager and assets attributable to a non-advisory client.

Material Risk Factors. An investment in SCF III involves substantial risks that should be carefully considered by any prospective investor before deciding to make such an investment. Prospective investors should understand the risks associated with SCF III include, but are not limited to: market related risks; credit risks; second-lien, or other subordinated loans or debt risk; risks associated with competition for assets; bankruptcy risk; interest rate risk; and risks associated with non-financial risk considerations like ESG, cybersecurity, counterparty, business continuity and disaster recovery, regulatory risk; and conflicts of interest related to the investment itself and Sound Point’s concurrent management of multiple funds and client accounts within the same strategy and across other strategies. This is a non-exhaustive list of risk factors and there may be other risks applicable to the SCF III that are not identified in this summary but may still result in material losses to, or otherwise materially adversely affect, an investment in SCF III. Please refer to SCF’s Confidential Offering Memorandum for a full list of risk factors. Risk factors are also provided in Sound Point’s Form ADV Part 2A, which is publicly available on the SEC’s web site. Prospective investors should consult their own legal, investment, tax, and other advisers as to whether an investment is appropriate for them.

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