Sound Point Alternative Income Fund to invest in junk securities

By Angela McDaniels

Tacoma, Wash., Dec. 11 – Sound Point Alternative Income Fund plans to sell common stock and use the proceeds to invest in a variety of high-yield and distressed securities, according to an N-2 filing with the Securities and Exchange Commission.

The fund is a new, non-diversified, closed-end management investment company based in New York. Its investment objective is to seek an attractive risk-adjusted level of total return, primarily through current income and secondarily through capital appreciation.

The fund will invest primarily in the following:

• Speculative-grade senior secured loans;

• High-yield corporate bonds, including stressed or distressed, non-performing corporate debt;

• Long and short positions in equity securities, including common stock and preferred stock, and corporate credit-related instruments that seek to take advantage of the impact of bankruptcies, mergers, reorganizations, spinoffs, restructurings and material litigation;

• Other similar fixed-income instruments that may be represented by derivatives; and

• Equity and junior debt tranches of collateralized loan obligations that are collateralized predominantly by speculative-grade U.S. and non-U.S. senior secured loans.

The fund may invest in securities of any duration, but it expects to manage its portfolio to a duration of about three months to five years.

The fund may use leverage from time to time.

The fund will terminate after 15 years.

Sound Point Capital Management, LP is the fund’s investment adviser.

The fees have not yet been set.

The portfolio managers are Stephen Ketchum, managing partner, and Rick Richert.

Ketchum is the founder and principal owner of Sound Point Capital Management. Previously, he was global head of media investment and corporate banking for Banc of America Securities. Prior to joining BofA, he was a managing director at UBS in the TMT investment banking group.

Richert is a Chartered Financial Analyst. Prior to joining Sound Point, he was principal in the CLO group at American Capital. Before that, he was a senior credit analyst at Sanno Point Capital Management.

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