CPPIB to invest $285 mln in equity of Sound Point CLOs

Canada Pension Plan Investment Board (CPPIB) has agreed to invest US$285 million in a new vehicle that will purchase equity in the collateralized loan obligations (CLOs) of Sound Point Capital Management. The purchases will be made over the next several years by CPPIB Credit Investments. CPPIB said the partnership with Sound Point, a U.S. credit-focused asset manager, will be the first of several involving CLO specialists. John Graham, CPPIB global head of credit investments, said CLO equity enables his group to broaden and diversify its portfolio and provides a "compelling source of risk-adjusted returns" to the pension fund.

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