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Dyal fund takes stake in Sound Point Capital

Private equity fund Dyal Capital Partners II acquired a passive, minority, non-voting ownership stake in credit specialist Sound Point Capital Management.

The proceeds from the transaction will be used to fund growth in Sound Point’s core businesses, including an investment in the Sound Point CLO Fund, the hedge fund manager announced in a news release Tuesday. There will be no change in the firm’s day-to-day operations and employees are not selling their ownership interests in connection with the Dyal Capital Partners’ transaction, the release said.

Terms of the transaction are not being disclosed, the release said. Greg Cresci, Sound Point’s head of recruiting and human resources, did not return a call seeking comment. Alexander Samuelson, a spokesman for Neuberger Berman, Dyal Capital’s parent company, declined to comment.

Sound Point manages about $11.5 billion in liquid and illiquid credit strategies including leveraged loans, collateralized loan obligations, long/short credit opportunities and distressed credit.

"We are delighted to welcome Dyal as a strategic investor in Sound Point,” said Stephen Ketchum, Sound Point’s founder and managing partner in the release, adding “this is a significant event for our firm and having access to Dyal's global resources and permanent capital will enable us to take Sound Point's market-leading credit investing platform to the next level.”

"We are thrilled to partner with Stephen Ketchum and the Sound Point team,” said Michael Rees, head of Dyal Capital Partners, in the release.

“Sound Point has a diversified business model with a truly impressive track record of both investment performance and asset growth," Mr. Rees added.