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Bailey McCann, Opalesque New York: Private equity fund Dyal Capital Partners II has taken a stake in $11.5 billion credit hedge fund Sound Point Capital. Dyal Capital Partners is an investment unit within Neuberger Berman Group that provides permanent capital to hedge funds and private equity firms by investing in non-voting minority stakes within those firms. Dyal is on its third fund for such investments.
According to a statement from Sound Point, the proceeds from Dyal's investment will be used to fund growth in the firm's core businesses, including an investment in the Sound Point CLO Fund, which was launched in June 2015 to address the new CLO risk retention rules.
None of the Sound Point employees will be selling any of their interests in connection with the transaction, and there will be no change in the day-to-day operations of the firm.
Sound Point focuses on a range of credit strategies including funds and managed accounts focused on leveraged loans, CLOs, long/short credit opportunities and distressed credit. The firm is majority owned by Stephen Ketchum and employees.
Sources familiar with the transaction suggest that the stake amounts to approximately 15 percent ownership in the firm.
"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 look forward to a long-term, successful ...................... To view our full article Click here
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