Neuberger's Dyal Capital Partners Takes Minority Stake in Sound Point Capital

Apr 5 2017 | 5:06pm ET

Neuberger Berman unit Dyal Capital Partners has taken a stake in alternative credit manager Sound Point Capital LP.

The position is characterized as passive and amounts to approximately 15% of the $11.5 billion money manager, according to a Reuters article citing an unidentified person familiar with the matter. The news comes after Dyal closed its oversubscribed third buyout fund in mid-February with $5.3 billion in capital commitments, although whether the Sound Point investment will be housed in the new fund was not immediately clear.

Terms of the transaction were not disclosed. A statement from Sound Point noted that Sound Point employees would not be selling any of their interests in connection with the transaction, and no changes in the day-to-day operations of the firm are expected.

Proceeds will be used to fund growth in Sound Point’s core businesses, the statement continued, including an investment in the Sound Point CLO Fund launched in June 2015 to address the new CLO risk retention rules. 

Founded by Stephen Ketchum in 2009, Sound Point specializes in liquid and illiquid credit strategies including leveraged loans, collateralized loan obligations, long/short credit opportunities and distressed credit.

Dyal Capital Partners was formed in 2011 and manages nearly $9 billion across three permanent capital funds containing a total of 20 minority partnerships in institutional alternative asset management businesses worldwide, including such well-known names as Halcyon Capital Management, Jana Partners, Graham Capital Management, Starwood Capital Group and Vista Equity Partners.

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