Sound Point Meridian Capital

Sound Point Meridian Capital

Sound Point Capital Management was established in 2012 by Stephen Ketchum, a veteran credit investor who previously spent over a decade at Oak Hill Advisors. The firm was built to source and manage investments across the credit spectrum, from performing senior loans to distressed and special situations. Ketchum's background in navigating complex credit cycles provided the foundation for the firm's multi-strategy approach. The firm's investment activities span multiple credit disciplines, including leveraged loans, high-yield bonds, structured credit, and distressed debt. It manages capital through a mix of collateralized loan obligations (CLOs), commingled funds, and separately managed accounts. The strategy is focused on bottom-up fundamental credit analysis, targeting opportunities across the capital structure. The firm invests primarily in North American credits, with a particular emphasis on middle-market and broadly syndicated loan markets. As of early 2024, Sound Point completed an initial public offering of its CLO equity vehicle, Sound Point Meridian Capital, Inc., which trades on the New York Stock Exchange. This closed-end fund structure allows the firm to permanently deploy capital into the equity tranches of CLOs it manages. The move highlights a structural innovation in aligning permanent capital with the firm's core CLO management business. Ketchum continues to lead the firm with a team drawn from other credit-focused asset managers. The firm's structural differentiator lies in its public, permanent capital vehicle for CLO equity, a structure that sets it apart from typical private credit managers. Instead of relying solely on periodic fundraises, the Meridian entity provides a stable capital base to retain CLO risk retention stakes. This hybrid of an operating management company and a publicly listed investment fund creates an unusual alignment between the manager's balance sheet and fund investor interests.