Home Consumer debt Sound Point Capital acquires the U.S. direct lending unit of CVC Credit

Sound Point Capital acquires the U.S. direct lending unit of CVC Credit


NEW YORK–() – Sound Point Capital Management, LP, a credit-focused investment management firm overseeing approximately $ 25 billion in total assets, is pleased to announce that it has acquired the U.S. lending platform direct from CVC Credit.

Terms of the transaction were not disclosed. As part of the deal, Sound Point hired a team of nine investment professionals from CVC Credit who together manage a portfolio of approximately $ 1 billion in assets. The team primarily provides senior and unitranche credit facilities to mid-market US companies. Borrowers have included businesses in a wide variety of industrial sectors, including consumer services, business services, healthcare, pharmaceuticals, hospitality, telecommunications, industries, and other sectors.

“We are delighted to add this investment portfolio and team of talented individuals to our organization,” said Stephen Ketchum, Founder and Managing Partner of Sound Point Capital. “This transaction brings another dimension to our already successful lending platform and positions us for future growth. ”

The nine-person CVC team is led by Tom Newberry, Global Head of Private Debt at CVC Credit, and David DeSantis, Head of US Private Debt at CVC Credit. MM. Newberry and DeSantis have each been named co-lead direct loans at Sound Point.

“Sound Point’s credit platform is the perfect home for a band like ours,” commented Newberry. “We see this as a way to accelerate the growth of our business and expand our underwriting capabilities through future expansion. ”

DeSantis added, “The combination of our team’s proven track record and Sound Point’s deep connectivity among institutional investors makes for a powerful alliance. ”

New York-based Sound Point launched its “Strategic Capital Fund” in May 2018 with approximately $ 500 million in committed capital from investors. This fund has mainly focused on highly structured tailor-made financing for private and public companies in times of transition and recovery. CVC Credit’s U.S. direct lending platform, which focuses on providing growth capital and acquisition finance to proven mid-market companies, will complement these efforts.

“The prevalence of ‘non-bank loans’ in recent years is well known,” Ketchum continued. “As traditional banks have shifted away from certain areas of the market, companies like Sound Point have been able to successfully deploy capital with strong capital protection, providing attractive floating rate returns to investors. Adding Tom, David and their entire team to our 100-person firm will help us boost our efforts in this industry.

Ken Young, President of CVC Credit, commented: “Following a strategic review in 2020, we have decided to sell our direct lending business in the United States. We are delighted to announce the sale at Sound Point and we wish Tom, David and the whole team the best. Following this sale, we are strongly focused on accelerating the growth of CVC Credit in our three key areas: Performing Credit, European Direct Lending and Capital Solutions to ensure that CVC Credit is always more aligned with the CVC network.

In total, CVC Credit’s U.S. direct lending platform absorbed by Sound Point has deployed more than $ 1.7 billion across 88 transactions. The management team has approximately 70 years of collective experience, having completed over $ 18 billion in loan commitments during this time. The main members of the senior team have worked together or have known each other for over 20 years.

Berkshire Global Advisors acted as financial advisor to CVC Credit in connection with this transaction.

About Sound Point Capital Management, LP

Sound Point is an alternative asset management company founded in 2008 with particular expertise in credit strategies. Based in New York, with offices in London, the company manages funds on behalf of institutional investors, including leading pensions, foundations, insurance companies, wealth management companies 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 loans, direct loans and lending. commercial real estate. Sound Point currently manages around $ 25 billion in assets. Five executives from Stone Point Capital LLC, as well as Dyal Capital Partners, a division of Blue Owl Capital Inc. [NYSE: OWL], are strategic investors in our company. For more information, please visit the Sound Point website at www.soundpointcap.com.

About HVAC Credit

CVC Credit is the credit management business of CVC. CVC Credit is a global credit asset manager with offices in the United States and Europe, over 60 investment professionals and $ 28 billion in assets under management. The platform seeks to generate positive absolute returns and attractive risk-adjusted returns on capital for its investors throughout the credit cycle. CVC Credit has built a diverse business that creates significant synergies between its investment strategies. For more information on CVC credit, please visit: www.cvc.com/credit.

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