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Skypoint Capital

Sound Point Capital

Sound point alternative income fund

Investment Objective

The Fund seeks to generate current income and to provide attractive risk-adjusted returns across varying market cycles by investing in a broadly constructed portfolio of private, structured and liquid credit strategies.

The Sound Point Alternative Income Fund utilizes a different approach to Private Credit allocation by focusing on the core middle market and resilient industries and by maintaining a disciplined, solutions-oriented investment process that prioritizes partnership, selectivity, and long-term value creation.

The Fund will also look to identify additional opportunities to generate incremental yield and exploit trading inefficiencies, by tactically and opportunistically allocating to high income, attractive absolute return investments in traded CLO Equity and Mezzanine tranches and Performing Credit.

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Overview

Firm

Sound Point Capital is an SEC-registered, diversified alternative asset manager with expertise in credit. 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.

Strategy

Sound Point Alternative Income Fund (“SAIF” or the “Fund”) focuses on private credit lending strategies with tactical exposure to traded markets. Specifically, SAIF allocates predominantly to opportunities in three private credit markets – U.S. Direct Lending, Asset-based Lending and Specialty Finance. Relative to public market equivalents, these markets offer investments expected to be higher yielding, lower volatility and more diversified. Where Sound Point identifies opportunities to generate incremental yield and exploit trading inefficiencies, the Fund may also tactically and opportunistically allocate to high income, attractive absolute return investments in traded CLO Equity and Mezzanine tranches and Performing Credit.

  • Access to institutional-style liquid and private credit solution
  • Seeks enhanced income and strong risk adjusted returns across liquid and private credit cycles
  • Aims to capture market inefficiencies and tailwinds
  • Utilizes a top-down approach to strategy allocation and bottom-up, fundamental analysis for credit selection

(a) *Class I shares of the Fund with a minimum of $10,000,000 are currently the only shares offered to Shareholders. The Fund expects to offer Class Y shares in the future with a minimum of $50,000.

(b) *The Fund’s adviser has contractually agreed to waive fees and/or pay operating expenses, excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such that total expenses do not exceed 2.25% for both the I and Y share classes. The Expense Limitation and Reimbursement Agreement may not be terminated before 3/23/2027 and thereafter may be terminated by the Fund or the Investment Adviser upon 30 days’ written notice. Unless it is terminated, the Agreement automatically renews for consecutive one-year terms.

(c) *The Fund is not a liquid investment. The Fund is designed primarily for long-term investors and not as a trading vehicle. The Fund is an “interval fund” pursuant to which it, subject to applicable law, will conduct quarterly repurchase offers for between 5% and 25% of the Fund’s outstanding Shares at net asset value (“NAV”), unless postponed or suspended in accordance with regulatory requirements. In connection with any given repurchase offer, it is likely that the Fund may offer to repurchase only the minimum amount of 5% of its outstanding Shares. It is also possible that a repurchase offer may be oversubscribed, with the result that shareholders may only be able to have a portion of their Shares repurchased.

(d) *The amount of distributions that the Fund may pay, if any, is uncertain. The Fund may pay distributions in a significant part from sources that may not be available in the future and that are unrelated to the Fund’s performance.

Sound Point alternative Income Fund Key Facts

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Our Team

Knowledge, expertise, and proven experience across cycles

  • Tom Newberry

    Portfolio Manager,
    Chief Credit Officer,
    Executive Chairman of Direct Lending

  • Gunther Stein

    Portfolio Manager,
    CIO of U.S. Performing Credit

  • Jane Lawrence

    Portfolio Manager,
    U.S. CLOs

Tom Newberry

Portfolio Manager,
Chief Credit Officer,
Executive Chairman of Direct Lending

Prior experience:

  • CVC Credit Partners: Partner, Global Head of Private Debt, Senior Portfolio Manager
  • Credit Suisse: Managing Director and Head of Global Leveraged Finance Capital Markets and Syndicated Loans
  • DLJ: Managing Director, head of U.S. Loan Capital Markets
  • Deutsche Bank: Managing Director and Head of North American Loan Syndications

Mr. Newberry joined Sound Point in 2021 and is currently Chief Credit Officer and Executive Chairman for the Direct Lending group. Additionally, Mr. Newberry serves on the firm’s Management Committee and is a member on most risk, investment and valuation committees at the firm. Prior to joining Sound Point, Mr. Newberry was a Partner,  Global Head of Private Debt and a Senior Portfolio Manager at CVC Credit Partners. Prior to CVC, Mr. Newberry spent 11 years at Credit Suisse, where he was a Managing Director and Head of Global Leveraged Finance Capital Markets and Syndicated Loans. In this capacity, he was responsible for the underwriting of all high yield bond, mezzanine and syndicated loan transactions, as well as the sale and trading of both par and distressed loan assets. Mr. Newberry joined Credit Suisse in November 2000 when Credit Suisse First Boston merged with DLJ, where he was a Managing Director and head of US Loan Capital Markets. He joined DLJ in 1996 from Deutsche Bank where he was a Managing Director and Head of North American Loan Syndications. Prior to that, Mr. Newberry worked at Toronto-Dominion Securities and NCNB National Bank. He served on the board of directors of the Loan Syndication & Trading Association for six years, acting as both Chairman and Vice Chairman.

Mr. Newberry earned a B.A. in Foreign Affairs from the University of Virginia.

Gunther Stein

Portfolio Manager,
CIO of U.S. Performing Credit

Prior experience:

  • Symphony Asset Management: Chairman, CEO, CIO
  • Wells Fargo: Vice President and Portfolio Manager

Mr. Stein joined Sound Point in 2023 and is currently Head and Chief Investment Officer of the U.S. Performing Credit platform. Additionally, Mr. Stein serves on Sound Point’s Management Committee as well as many of the firm’s investment and risk committees. Mr. Stein is a veteran CIO and portfolio manager with over 30 years of credit investing experience. Prior to joining Sound Point, Mr. Stein served as Chairman, CEO, and CIO of Symphony Asset Management, a San Francisco-based alternative asset manager that was active across the credit investing spectrum. Mr. Stein joined Symphony Asset Management in 1999 and as CEO, grew Symphony’s AUM from approximately $7 billion in 2009 to $19.5 billion when he departed in 2018. Prior to Symphony Asset Management, Mr. Stein was a Vice President and Portfolio Manager at Wells Fargo.

Mr. Stein earned a B.A. in Economics from University of California at Berkeley and an M.B.A. from The University of Texas at Austin.

Jane Lawrence

Portfolio Manager,
U.S. CLOs

Prior experience:

  • BlackRock: Director of Structured Products
  • Halcyon Capital Management: credit research
  • Matlin PAtterson/UrsaMine: credit research

Ms. Lawrence joined Sound Point in 2020 and is currently a Portfolio Manager for the U.S. CLO platform and the Sound Point Senior Floating Rate Strategy. Additionally, Ms. Lawrence serves on the firm’s Risk Committee, U.S. Floating Rate Fund Investment Committee and CLO Risk Committee. She has over 19 years of credit market experience spanning structuring, research and investment across both leveraged loans and underlying CLO tranches. Prior to joining Sound Point, Ms. Lawrence served as a Director of Structured Products at BlackRock. Prior to that, she has held credit research positions at Halcyon Capital Management, MatlinPatterson/UrsaMine and Bear Stearns Asset Management covering numerous sectors including Aerospace & Defense, Business Services, Chemicals, Consumer Products, Media and Retail.

Ms. Lawrence earned a B.S. in Marketing from Rutgers University and is a Chartered Financial Analyst (CFA) charterholder.

Resources

Literature

Frequently Asked Questions

What is a Closed-End Interval Fund?

The Sound Point Alternative Income Fund is a closed-end interval fund, registered investment company continuously offering shares at the net asset value (“NAV”) to an unlimited number of investors. Closed-end interval funds are not exchange listed and can provide investors the potential for some liquidity through repurchases of their shares at NAV, typically no less than 5% of outstanding shares on a quarterly basis. Detailed information on closed-end interval funds can be found on the SEC’s website.

The Fund is not a liquid investment. The Fund is designed primarily for long-term investors and not as a trading vehicle. The Fund is an “interval fund” pursuant to which it, subject to applicable law, will conduct quarterly repurchase offers for between 5% and 25% of the Fund’s outstanding Shares at net asset value (“NAV”), unless postponed or suspended in accordance with regulatory requirements. In connection with any given repurchase offer, it is likely that the Fund may offer to repurchase only the minimum amount of 5% of its outstanding Shares. It is also possible that a repurchase offer may be oversubscribed, with the result that shareholders may only be able to have a portion of their Shares repurchased.

How Do I Make an Investment in the Sound Point Alternative Income Fund?

Investors can invest in the Fund at any time through participating brokers or directly with the Fund. Contact the Fund’s Administrator at (800) 440-4485 to inquire about Fund accessibility via a specific broker or any questions about investing directly with the Fund.

Investors must review the Fund prospectus prior to investing.

What Is The Minimum Investment Amount?

The Fund’s minimum investment amount is $10,000,000 for the Class I Shares, $50,000 for Class Y Shares, and $25,000 for Class A Shares.

How is the Net Asset Value (NAV) of the Sound Point Alternative Income Fund Determined?

The NAV of the Fund’s shares is determined daily. During the continuous offering, the price of the shares will increase or decrease on a daily basis according to the NAV of the shares. In computing NAV, portfolio securities of the Fund are valued at their current fair market values determined on the basis of market quotations, if available. Because market quotations are not typically readily available for the majority of the Fund’s securities, they are valued at fair value as determined by the Board of Trustees. The Investment Adviser, subject to the oversight of the Board of Trustees, shall develop the Fund’s valuation methodologies and make valuation determinations. Valuation determinations are reviewed periodically by the Board of Trustees, including in connection with any quarterly repurchase offer. More details can be found in the Fund prospectus.

Who Manages the Sound Point Alternative Income Fund?

The investment adviser for the Fund is Skypoint Capital Advisors, LLC. The sub-adviser for the Fund is Sound Point Capital Management, LP and is responsible for the oversight of the investment portfolio to ensure consistency between the Fund’s investment objectives and target allocations. The Board of Trustees of the Fund has overall responsibility for monitoring the Fund’s investment program and its management and operations.

What is the Sound Point Alternative Income Fund Advisory Fee?

The Fund’s annual advisory fee is 1.30% on managed assets. The Fund’s total gross expenses and net expenses for the Class Y shares are 2.96% and 1.66% respectively. The Fund’s adviser has contractually agreed to waive fees and/or pay operating expenses, excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such that total expenses do not exceed 2.25% for the shares respectively. The Expense Limitation and Reimbursement Agreement may not be terminated before 3/23/2027 and thereafter may be terminated by the Fund or the Investment Adviser upon 30 days’ written notice. Unless it is terminated, the Agreement automatically renews for consecutive one-year terms.

Schedules

Repurchase Offer Schedule

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Inception date for the Sound Point Alternative Income Fund is 4/15/2026

Risk Considerations & Disclosures

An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information can be found in the Fund’s prospectus, a copy of which may be obtained here on our website or by calling Skypoint Capital Advisors at (800) 440-4485. Please read the prospectus carefully before investing.

Investment in the Sound Point Alternative Income Fund is speculative and involves substantial risks, including the risk of loss of a Shareholder’s entire investment. Investors may not have immediate access to invested capital for an indefinite period of time and must have the financial ability, sophistication/experience, and willingness to bear the risks of an illiquid investment. No public market for Shares exists, and none is expected to develop in the future. An investor’s participation in the Fund is a long-term commitment, with no certainty of return.

The Fund is a newly organized, non-diversified, closed-end management investment company with no operating history. The Fund is subject to all the business risks and uncertainties associated with any new business, including the risk that the Fund will not achieve its investment objectives and that the value of Shares could decline substantially. It is designed for long-term investing and not as a vehicle for trading.

The Fund’s success depends on the acumen and expertise of the Sub-Adviser in selecting investments or other assets in which to invest. The strategies implemented by the Sub-Adviser typically are leveraged. The use of leverage increases both risk of loss and profit potential. The risks associated with the types of investments selected by the Sub-Adviser include risks such as: market related risks; transaction related risks; geo-political risks; credit risks; non-investment grade debt investment risks; risks associated with investing in debt obligations or securities of middle-market companies; risks associated with competition for assets; bankruptcy risks; default risks; risks associated with the nature of investment collateral; interest rate risks; borrower risks including fraud; risks associated with non-financial risk considerations like, cybersecurity, counterparties, business continuity and disaster recovery, and regulatory risks; and, conflicts of interest related to the investment itself and the Sub-Adviser’s concurrent management of multiple funds and client accounts. This is a non-exhaustive list of risk factors and there may be other applicable risks that are not identified in this summary but may still result in material losses to, or otherwise materially adversely affect, an investment. Please review the more complete list of risks in the Fund’s prospectus.

The Fund has been organized as a closed-end management investment company. Closed-end funds differ from open-end management investment companies (commonly known as mutual funds) in that investors in a closed-end fund do not have the right to redeem their Shares on a daily basis. To meet daily redemption requests, mutual funds are subject to more stringent regulatory limitations than closed-end funds. The Fund does not currently intend to list the Shares for trading on any securities exchange, and the Fund does not expect any secondary market to develop for the Shares in the foreseeable future.

Credit Risk – One of the fundamental risks associated with the Fund’s investments is credit risk, which is the risk that an issuer will be unable to make principal and interest payments on its outstanding debt obligations when due. The Fund’s return to investors would be adversely impacted if an issuer of debt in which the Fund invests becomes unable to make such payments when due.

The Fund seeks to achieve its investment objectives by investing in a broadly constructed portfolio of private, structured, and liquid credit strategies. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes in alternative income-producing credit and income instruments across any of the following strategies: (i) private credit, including directly originated corporate loans (i.e., direct lending), such as first-lien senior debt and unitranche facilities, as well as asset-based loans, such as senior secured loans and junior debt facilities (the “Private Credit Strategy”), (ii) structured credit, including equity and debt tranches of collateralized loan obligations (“CLOs”) (the “Structured Credit Strategy”), and (iii) liquid credit, including broadly syndicated loans and tradable high yield bonds (“junk” bonds) (the “Liquid Credit Strategy” and collectively with the Private Credit Strategy and Structured Credit Strategy, the “Alternative Income Investments”). The Fund may also invest in illiquid and restricted securities. The Fund expects to invest a significant portion of the Alternative Income Investments in senior, secured and floating rate credit instruments, which the Sub-Adviser believes have the potential to mitigate credit and interest rate risks. The Fund’s portfolio will be broadly constructed in respect of the Alternative Income Investments, as well as by collateral type, industries and end-borrowers, among other attributes, and positioned to take advantage of market inefficiencies and attractive relative value opportunities.

The Sound Point Alternative Income Fund is distributed by Distribution Services, LLC (DS). Check the background of Distribution Services on FINRA’s BrokerCheck. DS is not affiliated with Skypoint Capital Advisors, LLC or Sound Point Capital Management, LP. Skypoint Capital Advisors, LLC (“Adviser”) is an SEC-registered investment adviser offering financial advisors access to investment managers with experience in alternative asset classes. Registration does not imply a certain level of skill or training.