Charles Koch’s Firm Backs New CLO Fund for the Public Market
- Sound Point relied on Koch capital to start CLO equity fund
- Fund trades on public market, allowing individuals to invest
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Billionaire Charles Koch’s closely held company is cashing in on the appetite of individuals for one of the riskiest corners of the loan market.
When money manager Sound Point Capital Management recently started a new closed-end fund tied to loans, an affiliate of the Koch family bought a large portion of it. The fund, Sound Point Meridian Capital, invests in CLO equity, securities that are first in line to absorb losses on loans to leveraged companies that are packaged into collateralized loan obligations.