New York-based alternative credit manager Sound Point Capital has announced the first close of its Strategic Capital Fund III (SCF III), raising $1.1bn (£0.8bn), more than doubling the capital raised by its predecessor funds, according to a report by Alternative Credit Investor.
With over $44bn in assets under management, Sound Point is targeting US corporate borrowers with SCF III through first-lien, short-maturity loans secured by liquid collateral such as accounts receivable, equipment, and inventory.
The $1.1bn raised surpasses both the fund’s initial target of $500m and its final close target of $1bn, eclipsing the $492m and $514m raised for SCF I and SCF II, respectively. The firm aims to reach a hard cap of $1.5bn by the fund’s final close, expected by year-end.
SCF III attracted a diversified investor base including insurance companies, public and private pension funds, asset managers, and family offices from North and Latin America, Europe, and Australia. Insurance companies accounted for over half of the first close commitments.
Furthermore, the fund secured a 100% re-up rate from institutional investors in SCF II, with several committing significantly increased capital for the new fund.
