Sound Point Raises $1.1 Billion for Inventory, Asset-Tied Debt

Alternative credit firm Sound Point Capital Management has raised $1.1 billion from the first round of commitments for a fund that will invest in company debt tied to inventory and other assets, more than doubling its initial target.

Sound Point is now aiming for a final close of $1.5 billion by year-end, according to an emailed statement. The fund — Strategic Capital Fund III — will provide short-maturity loans backed by collateral that can be converted to cash quickly, including accounts receivable, equipment, inventory and other high-quality assets.

The majority of the $4.4 billion of investments made by Sound Point’s ...