Sound Point Closes $1.2B Direct Lending Fund

Sound Point Capital Management, LP announced the final close of its largest direct lending fund to date, Sound Point U.S. Direct Lending Fund III, with $1.2 billion in investable capital. Furthermore, Sound Point Direct Lending closed on a separately managed account that is expected to expand to more than $500 million.

The fund follows the same strategy as its predecessors, focusing on core middle-market, sponsor-backed companies. So far, the fund has committed over $650 million in investable capital, including equity commitments and available borrowings, spanning 33 investments and a diverse variety of industries. The total investable capital of USDL III is approximately double that of its predecessor fund.

“We view our market segment as less crowded, resulting in greater selectivity and strong risk-adjusted returns for our investors through a spread premium, lower leverage, and stronger documentation terms,” said Tom Newberry, chief credit officer and portfolio manager of Sound Point’s direct lending platform.

Founded in 2008, the New York-based global alternative credit manager focuses on leveraged loans, special situations, distressed debt, structured credit, direct lending and commercial real estate. Th firm currently manages more than $45 billion in assets.