Sound Point, Skypoint Debut Alternative Income Interval Fund

Sound Point Capital Management, LP and Skypoint Capital Advisors have launched the Sound Point Alternative Income Fund (SAFTX), a multi-asset credit interval fund designed to broaden individual investor access to private and alternative credit markets.

SAFTX will primarily focus on core middle-market direct lending, complemented by private asset-based finance and specialty credit strategies, while retaining flexibility to allocate to liquid credit when relative value opportunities arise.

“The core middle market continues to offer stronger structural protections and more attractive spreads than the increasingly crowded large-cap direct lending market,” said Tom Newberry, Chief Credit Officer and Executive Chairman of Direct Lending at Sound Point. “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.”

The interval fund structure offers quarterly liquidity through repurchase offers of at least 5% of shares, alongside quarterly income distributions, daily NAV pricing and simplified 1099 tax reporting. The fund also features a de novo portfolio, avoiding legacy credit exposure, and a single-layer fee structure.

The strategy seeks to mitigate risk through diversification across credit asset classes backed by contractual cash flows and hard or specialty financial assets.

SAFTX will be managed by Newberry, alongside Gunther Stein, Head and CIO of U.S. Performing Credit, and Jane Lawrence, Senior Floating Rate Portfolio Manager.

The fund is available to RIAs on platforms including Charles Schwab and Fidelity Investments, as well as for direct investment.