EX-99.1 2 soundpoint_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

S P MC L is ted N Y SE Soun d P oint M e r idi a n Capit al Sep t e m be r 2024 Y TD 1 yea r 3 year C umul at i ve S i nce I nce p t i o n 5 . A GL CL O 33, Subo r di na t e d N o te 4.16% P a st p e r f or m anc e i n n o t i n di c a t i ve o f fu t ur e r e s u l t s o r a g u a r an te e o f f u t ur e r e t urn s. E n d n o te s 1 - 3 ca n be f o u n d o n Pa ge 3. P l e a s e a l s o r e v iew t h e Im p o r t a n t In f o rm a t i o n p ro vided o n p a g es 3 a n d 4 . P erc e n ta g es m a y n ot add to 1 0 0 due t o ro un di n g. T h e s e l e cted b e n c h m a r k s ar e p r ovi d ed f o r N ET P ER F ORMANCE V E R S US SEL E C T ED IN D I C E S 2 An n u al i ze d T o ta l R etur n S ep t em b er 2024 S i n ce In cep t io n P a st p e r f or m anc e i s n o t i n di c at i ve o f fu t ur e r e s u l t s o r a g u a r an t ee o f f u t ure r e t urn s . T o t al r e t u rn is b a s e d o n S P M C ’s c l os i n g s t o ck p r i c e d u ri n g t h e a ppl i c a b l e p e r iod a n d ass u m es t h a t a n y d i v i d e n d s or d is t r i b ut i o n s ar e r e i n ves t ed on t h e a ppl i c ab l e p a y m e n t d ates at p r ic es o b t ai n ed b y t he C o m p a n y ’s divide n d r ei n ves tm e n t plan . YT D a n d C u m u l at iv e S i n ce I n c e p t i on c a l c u l ated a s o f S P M C i n ce p t i on da t e o f J un e 1 3 , 2 0 2 4 . C u rr e n t p e r f o r m a n c e m ay be l o w e r o r hi gh er than the p er f or m a n c e data q u o ted . C urr e nt p er f orm a n ce i nf ormat i on may be f o un d o n S PMC’s w e bs i te ( w ww . s o un d p oi n tme r idia n ca p . c om) . P O R T F O LIO S UMM A R Y A S OF 9 / 3 0 / 2 0 2 4 3 C OMMON S T O C K D A T A A S OF 9 / 3 0 / 2 0 2 4 1 SPMC T ic k er Sy mbol M on t h l y F req u ency of Paymen t s 12 . 14% Cu rre n t Divi d end Yi e l d $ 1 9 . 77 Cl osing Price Per S h are $ 3 96 . 35 T otal Net A ss et V a lu e ($) (e st. ) $ 19 . 5 5 – $ 1 9 . 65 Net A ss et V a lu e Per S h are (e st. ) 0 . 87% Pre m i u m / (Disco u nt) $ 3 99 . 79 T otal M ar k et C apitaliza t ion ($M) com p ar a ti v e a nd i llu strat i ve pu r p os e s o nl y. SP M C be g an trading o n the New Y o rk S tock E x cha ng e (“NY S E”) o n J un e 14 , 2024 . 2 . 37% -- -- -- 2 . 37% - 0 . 25% SPMC 5 . 28% -- -- -- 5 . 28% 1 . 63% IC E B ofA U . S. H igh Yi e l d I n d ex 0 . 13% -- -- -- 0 . 13% 0 . 82% S &P B DC I ndex 2 . 13% -- -- -- 2 . 13% 0 . 71% Morn ings t ar L S T A U . S. L ev e ra g ed L o a n I n d ex S UMMA R Y OF U ND ER L Y ING P O R T F OLI O 4 M ar k et M edi a n SPMC -- 1 , 532 N u mb er of Un d er l yi n g L o a ns -- 29 . 97 A ggr e g a t e B a l ance of Un d er l yi n g A ss e t s ($B) -- 0 . 07% Av e ra g e I n d ivi d u al Obl igor Ex pos u re 3 . 50% 3 . 53% W eig ht ed Av e ra g e Portfo l io Spr e ad 83 86 W eig ht ed Av e ra g e Diver s ity S c ore 2 , 779 2 , 757 Weig ht ed Av e rage Moody ’ s Ra t ing F ac t or 97 . 5 98 . 1 W eig ht ed Av e ra g e M ar k et Price 1 , 758 1 , 725 W eig ht ed Av e ra g e F aci l ity Size ($B) 7 . 12 7 . 10 W eig ht ed Av e ra g e B id Dep t h 4 . 05 4 . 57 W eig ht ed Av e ra g e J u nior O C Cush ion 2 . 59 3 . 93 W eig ht ed Av e ra g e Reinv e stm e n t Period Re m aining (Year s ) F e e N o t es W ar eh ous e 0.85% C LO D ebt 3.92% 0.52% C LO Eq ui t y 94.71% T OP 5 C L O MA NA GE R S 5 14 . 35% 1. Bl ac kst one De b t Advi s ors L P 12 . 97% 2. C ar l yle CL O M an a g e m ent 11 . 19% 3. AGL C redit 11 . 06% 4. On e x C redit Par t n e rs 8 . 88% 5. KK R F inanci a l Advi s ors T OP 5 P O S ITI O N S 5 U ND ER L Y ING P O R T F OLIO B Y C RE D IT TYP E 5 97 . 35% 1. L e w ey Park CLO , S u bor d ina t ed No t e 6 . 52% F irst L i e n L o a n 0 . 03% 2. OC P CL O 202 4 - 35, S u bor d ina t ed No t e 5 . 93% Unsec u red L o a n 0 . 31% 3. C ar l yle U . S. CL O 2024 - 5, S u bor d ina t ed No t e 4 . 39% Second L i e n L o a n 2 . 31% 4. B e n e fit S t reet Par t n e rs CL O X X XI I , S u bor d ina t ed No t e 4 . 27% Bond

 

 

 

 

 

 

S P MC L is ted N Y SE Soun d P oint M e r idi a n Capit al Sep t e m be r 2024 Past p e r f or m anc e i n n o t i n di c ati ve o f futur e r e s u l t s o r a gua r a nt ee o f futur e r e t urn s. E n d n o t es 1 - 3 ca n be foun d o n Page 3. P l ease a ls o review the T O P 1 0 U ND ER L Y ING O BLIG O R S ( W A EX P O S U RE ) 7 1. T ra nsD igm 2. A s urio n 3. Moz art Deb t M e rger S u b 4. T IBC O Softw a re 5. C a e s a rs Ente r t ain me nt 6. A lli e d Uni v e r s al H old co 7. Br ookfi eld WE C H oldin gs 8. S t a rf r u it T op co C oo p e ra ti e f UA 9. Osmosis Deb t M e rger S u b 10. F lutter Ente r t ain me nt 0.56% 0.53% 0.49% 0.42% 0.42% 0.41% 0.40% 0.39% 0.37% 0.37% WEI G HTED A V ER A G E R A TING D I S TRIBU TIO N 6,7 W E I G HTED A VER A G E M A T U RIT Y D I S TRIB U TI O N 7 WEI G HTED A V ER A G E P R I C E D I S TRIBU TIO N 7 W E I G HTED A VER A G E S T A T ED SPR E AD D I S TRIB U TI O N 7 The b e l o w me t ri c s r e la t e t o t he u nde r lying colla t e r al ac r oss t he F u nd’s C L O Holdin g s. 5 1 .6 4 % 0% 10% 50% 40% 30% 20% 60% 2 3 .4 2 % 1.79% 5% 25% Im p orta n t I nf ormation p rovided on p a g es 3 a n d 4. Perc e n ta g e s may n ot add to 1 0 0 due to ro un din g . 20 % 1 8 .7 1 % 1 5 .7 1 % 15 % 12 . 73 % 1 0 .1 3 % 10 % 7.97% 4.31% 4.36% 0.87% 0% T OP 1 0 IN D U S TRIE S OF U ND ER L Y ING O BLIG O R S ( W A EX P O S URE ) 7,8 10 . 62 % 1 . H igh T e ch 9 . 86 % 2 . S e r v ic e s: B us i ne ss 9 . 69 % 3 . H ea lt hc a re & P harmac e u t ic a l s 9 . 01 % 4 . B a n ki n g , Fin a nc e , I ns u r a nce & Rea l Est a t e 4 . 97 5 . H o t e l s, G a ming & L e isure 40 % 3 5 .4 0 % 35% 30% 25 % 2 0 .7 0 % 20 % 1 7 .0 6 % 15 % 1 3 .3 7 % 9.27% 10% 5 % 3.02% 0.02% 0 . 86 % 0.31% 0% 40% 3 5 .4% 35% 30% 25% 20 % 1 7 .5% 1 8 .7% 15% 10.0% 10% 5.7 % 6.4% 5 % 2.2% 0 .2 % 0 .2 % 0.6 % 1.2% 0.7 % 0.2 % 0.2 % 0.5% 0% 2 8 .5 6 % 6 . 81 % 7.64% 2 . 02 % 0.82% 2.51%

 

PORTFOLIO SUMMARY AS OF 9/30/20244 Fee Notes 1% CLO Debt 1% CLO Equity 98% TOP 5 CLO MANAGERS3 1. AGL CLO Credit Management 13.40% 2. KKR Financial 12.91% 3. Carlyle 12.30% 4. Benefit Street Partners 12.16% 5. Blackstone Liquid Credit Strategies 9.76% UNDERLYING PORTFOLIO BY CREDIT TYPE3 First Lien Loan 97.35% Unsecured Loan 0.03% Second Lien Loan 0.31% Bond 2.31% Past performance in not indicative of future results or a guarantee of future returns. Endnotes 1-3 can be found on Page 3. Please also review the Important Information provided on pages 3 and 4. Percentages may not add to 100 due to rounding. Cash is net of secured financing. The selected benchmarks are provided for comparative and illustrative purposes only. SPMC began trading on the New York Stock Exchange (“NYSE”) on June 14,

 

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S P MC L is ted N Y SE Soun d P oint M e r idi a n Capit al Sep t e m be r 2024 Notes 1. So un d P o i n t Me r i d i a n C a p it a l I n c . (“SP M C” or the “Co m pany ”) de t e r m i n e s its ne t a ss e t va l u e m o n thl y . T he ne t a ss e t va l u e of the Co m pan y (“ N AV”) a n d N A V pe r s h a re sho wn h e r e in a re ( i) un a u dit e d a n d e st i ma t e d by the C o mpa n y , (ii ) sho w n for i n fo r m a tio na l pur p os e s o n l y , an d ( i i i ) a s of the da te n ot e d a bo v e . E st i ma t e s wi th r e s pe c t to a c a l enda r m o n t h en d a re sub j e ct to r ev is i o n wh e n the Co m p an y de t e r m i n e s its m o n thly N A V . N AV i s c a lc u l a t e d a s the sum of the va l u e of the Co mp a ny 's p ortfolio, a ny c a sh or c a sh e q u i va l en ts h e ld by the Co mpan y an d t h e Co mp a ny 's oth e r a ss e ts l e ss the Co m p any 's li a bili t i e s . N AV pe r sh a re i s de t e r m i n e d by d i v i d i n g N A V by the num b e r o f sh a r e s of the Co mpany 's co mm on stock o u tst and i n g a s of the da te sho w n a bo ve . On a m o n thly b a sis, N AV i s c a lc u l a t e d a s the m i dp oi n t of the e sti ma t e d r an g e . 2. Co mpa r is o n s to I nd ic e s an d B en c h ma r k s . T he s e l e ct e d b en ch m a r k s a re p ro v i de d for comp a r a ti v e an d ill us t r a ti v e purp os e s o n l y . All b en ch ma rk pe rfor m an ce i n f o rm a t i on h a s b ee n obt a i n e d fr o m thir d - p a rty so ur c e s an d sho u ld n ot be r e li e d u p on a s c o mp l e te or a ccur a t e . I nd ic e s a re unm a na g e d a n d d o n ot r e fl e ct the i mpa ct of adv i s ory f ee s . I nve stors c ann ot i n v e st dir e ctly i n a n i n dex . I nde x p ro v i de rs u tili z e th e ir o w n me t h o d olo g i e s for c a lcul a ti n g pe rfor man c e , whi c h m a y d iff e r from the me th o d olo g i e s use d b y SP M C . T h e re a re sig n i f ic an t d iff e r en c e s b e t wee n the t ype s of s e curiti e s t yp ic a lly tr a c k e d by a n i n de x an d the i n ve s t men ts h e ld i n a r e l e v a nt f un d or str a t e g y . A n y co mpa ri s o n s h e r e in of i n ve s t me n t pe rfo r ma n ce to a be n ch m a r k a re qu a l i f ie d a s fol l ows : (i ) the v ol a t i l i ty of such be n chm a rk ma y be ma t e r ia ll y d i ff e r e n t th a n the pe rfor ma n ce of the r e l eva n t f u n d and/ or str a t e g y ; ( i i) such b e n c h ma rk w ill emp loy d iff e r en t i nve s t men t g u i de l i n e s an d crit e r ia th a n the r e l ev a n t f un d a nd/ or str a t e g y , whi c h ma y c a us e the h o l d i n gs of the r e l evan t f un d a nd / or str a t e gy to d iff e r sig n if i c an tly from the i n ve s t men ts th a t co mp r ise the b en c h ma r k ; an d ( i i i) the pe rfor m a n ce of such b en ch ma r k h a s n ot n e c e ss a rily b ee n s e l e ct e d to co mpa re to the pe rfor man ce of the r e l evan t f un d and/ or str a t e g y , b u t r a th e r i s d isclos e d to a llow for co mpa r i son to a we l l - k n o w n b en c h ma r k or i n d e x for g ene r a l r e f e r en ce purp os e s . 3. T he p ortfolio su mma ry i s b a s e d on i n ve st e d a ss e ts (i . e . , ex cl ud i n g c a sh) an d a ssum e s the e sti ma t e d ma r k e t va l u e of the unde rl y i n g p ositio n s a s of 9 / 30 / 2024 . 4. T he i n for ma t ion p r e s e n t e d h e r e in i s on a loo k- throu g h b a sis to the co l l a t e r a li z e d lo a n oblig a tio n , or “CLO”, e q ui ty h e ld b y the Co mpan y an d r e fl e cts the a ggr e g a te unde rl y in g exp osure of the C o m pan y b a s e d on t h e p ortfolios o f those i n ve s t men ts . T he da ta i s e st i ma t ed , u n au d it e d a n d de r i ve d f r om t h ird pa rty s o ur c e s . Ma r k e t m e d i a n i s c a lc u l a t e d as the med i a n of a ll CLO 2 . 0 v i n t a ge dea ls c urren tly i n th e ir r e i n ve st men t pe riods a s of 9 / 3 0 / 2024 . 5. T he T op 5 Posit i ons a re SP M C’s fi v e l a r g e st a cross a ll p ositio n s a s of 9 / 30 / 2024 , exp r e ss e d a s a pe rc en t a ge of the i n ve st e d p ortfolio a t e sti ma t e d ma r k e t va l ue , i n cl ud i n g c a sh . T he va l u e of a ny f e e n ot e s / r e b a t e s i n t he r e l a t e d CLO e q ui ty p osi t io n s a re i n c l ude d wh e n p r e s en t i n g the T op 5 Posit i o n s . T he T op 5 Mana g e rs a re r an k e d by SP M C’s l eve l of exp osure pe r C LO mana g e r a s of 9 / 30 / 2024 , exp r e ss e d a s a pe rc en t a ge of the i n ve st e d p ortfolio a t e sti ma t e d ma r k e t va l ue , i n cludi n g c a sh . 6. Cr ed it r a ti n gs s ho w n a re b a s e d on tho s e a ssig n e d by M oo d y ’s for co mpa r is o n an d i n fo r ma t io n a l purp os e s, i f M oo d y ’s d o e s n ot a ss i gn a r a t i n g to a pa rti c u l a r obligor, the we ight e d ave r a g e r a ti n g sho w n r e fl e cts M o o dy ’s e q ui v a l e nt r a ti n g of a r a ti n g a g en cy th a t r a t e d the obligor, p ro v i ded , th a t such oth e r r a ti n g i s ava ilable wi th r e s pe ct to a CLO e q ui ty i n ve s t m e n t h e ld by u s . In the even t mu lti p le r a t i n gs a re av a ilabl e , the lo we st Moo d y’s r a ti n g, or i f th e re i s n o M o o dy ’s r a ti n g, the lo we st e q uiva l en t r a t i n g, i s used . T he r a t i n gs of s pe c i f i c b or r o w i n gs by a n ob l i gor ma y d i ff e r from the r a t i n g a s s i g n e d to the ob l i gor an d ma y d i ff e r am o n g r a t i n g a g en c ies . F or c e rt a i n ob l i g ors, n o r a t i n g i s avai l ab le in the r ep orts r e c e i ve d by the Co mp a ny . S u ch obligors a re n ot sho w n i n the gr ap hs and , a ccordi n g ly, the sum of the pe rc en t a g e s i n the gr ap hs ma y n ot e q ua l 100 % . R a ti n gs b e low BBB - a re b e low i n ve st men t gr ade . 7. W e obt a in our exp osure i n unde rl y i n g s en ior s e c ure d lo an s i n d ir e ctly thro u gh o u r CLO e q ui ty i n ve st men ts . 8. I ndus t ry c a t e gori e s a re b a s e d on M oo d y ’s i n dus t ry c a t e gori z a tion of ea ch obligor a s r ep ort e d i n CLO trust e e r ep orts to t h e ex t en t so r ep ort ed . C e rt a in CLO trust e e r ep orts do n ot r ep ort the i n dus t ry c a t e gory of a ll of the unde rl y i n g obli g ors an d whe re such i n fo r m a t i on i s n ot r ep ort ed , i t i s n ot i n cl ude d i n the su m ma ry loo k - thro u g h i n dus t ry i n fo r ma t i on show n . A s such, the Co mpa n y ’s exp osure to a pa rtic u l a r i n dus t ry m a y be high e r th a n th a t sho w n i f i n dus t ry c a t e gori e s we re ava ilable for a ll unde rl y i n g obligors . In add i t io n , c e rt a in u nde rl y i n g ob l igors m a y be r e- cl a ssi f i e d fr o m t i m e to t i m e b a s e d on d e v e lo p m e nts i n th e ir r e s p e cti v e bu si ne ss e s a n d/ or ma r k e t p r a cti c e s . Accor d i n gl y , c e rt a in unde rl y i n g borro we rs th a t a re c urren tl y , or we re pre viously, su mma r i z e d a s a si n gle borrow e r i n a pa rtic u l a r i n dus t ry m a y i n c urren t or f u t ur e pe riods be r e fl e c t e d a s mu lti p le borro we rs or i n a d iff e r en t i n dus t r y , a s app lic a bl e . Impo r ta n t I n f orm at i on © 202 4 So un d Poi n t Me ri d i a n C ap it a l . All Rights R e s e r ve d I nves tor s sh o uld con sult wit h t he i r fina n cia l a dv i s o r abo ut t he su itabi li t y o f SP M C i n t he i r p o r tfolio . I n v es t i ng i n S P M C i nvol v es a h ig h de g r ee o f ri s k , i n c lud i ng t he ri sk t h a t you m a y r e c e i ve l itt le o r n o r e t u r n o n y ou r i nves t m e nt o r t h a t you m a y lose p ar t o r al l of y o ur i nves t ment . T h i s i s a no n - d i vers ifie d c lo s e d - end f und . Sh a res o f SP M C a re lis te d o n t he N ew Yo rk S toc k E x c h ang e . Sh a r e s of clos e d - en d f u n d s fr e q uen tly tr ad e a t a d isco un t from th e ir N AV, whi c h ma y i ncr ea se i nve stors’ risk of loss . SP M C c a n n ot p r ed ict whe th e r its sh a r e s wi ll tr ad e a t, b e l o w or a bo v e N A V . T h e re i s n o a ssu r an ce th a t S P M C’s i n v e st men t o b je c t i ve s wi ll be a chi e ve d or th a t m o n t hly d istr i b u t i o n s p a id by S P M C wi ll b e m a i n t a i ne d a t the t a rg e t e d l eve l o r th a t d i v i den d s wi ll be pa id a t a ll . SP M C’s d ist r ibu t io n s ma y be f u nd e d fr o m un l i m it e d a m o un ts of off e ri n g p roc eed s or borro w i n gs, whi c h ma y co n s t it u te a r e t ur n of c a p it a l a n d r edu ce the am o un t of c ap it a l av a ilable to SP M C for i n ve s t men t . A r e t ur n of c a p it a l to sh a r e hol de rs i s a r e t ur n of a p or t ion of th e ir ori g i n a l i n ve s t men t i n SP M C, th e r e by r e duc i ng the t a x b a sis of th e ir i n v e stm e n t . SP M C i s ma n a g e d by So u n d Poi n t M e r id i a n M a na g e m e n t Co m p any , LL C (“SP MM C”), a subsi d i a ry of So un d Po i n t C ap it a l Ma n age m e nt, L P (“Sou n d Po i n t”) . SP M M C an d So un d Po i n t a re both r e gist e r e d a s a n i n ve st m e n t adv is e r wi th the U . S . S e c uri ti e s an d Ex ch an ge C o mm issi o n (the "S E C") . T he F orm A D V of SP M M C an d So un d P o i n t a re both pu blicly ava ilable on the S E C’s we bsite a t htt p : //w ww . adv is e ri n f o . s e c . go v . So u n d P o i n t ’s Form A D V P a rt 2 B i s ava il a ble up on r e q u e st . B e i n g a “r e gist e r e d i n ve st m e n t adv is e r” or de s c ribi n g SP MM C and/ or So un d Poi n t a s b e i n g “r e gist e r ed ” d o e s n ot i mp ly a c e rt a in l e v e l of s k ill or tr a i n i n g . SP MM C an d So u nd P o i n t ma k e n o r e p r e s en t a tion or wa rr an t y , exp r e ss or i mp l i ed , a s to the a cc ura cy or co mp l e t ene ss o f the i n for m a ti o n co n t a i ne d h e r e i n . T h e i n fo r ma ti o n p r e s en t e d h e r e i n i n cl u d i n g, b u t n ot li m i t e d to, p ortfolio co n struction an d br ea k d o wn s, b e nchm a r k s, an d i n ve s t men t ma y i n volve o u r sub je c t i v e v i ews , i n cl ud e a ssu m p ti o ns and e st i ma t e s, a s we ll a s f a cts an d i n fo r ma t i on from t h i rd pa rty s o ur c e s be l i e ve d to be a cc ura te an d r e li ab le a s of the da te t h i s in fo r ma t i on i s p r e s e n t ed — a n y of whi c h ma y c h an ge wi tho u t n o t ice . SP MM C an d S o un d P o i n t h av e n o ob l ig a t i on ( e xp r e ss or i mp l i ed ) to upda te an y or a ll of the i n fo r ma t ion p r o v i de d h e r e in or to a dv ise t h e r e ci p i e nt of a n y ch an g e s ; n or do e s S P M M C or So un d Po i n t m a k e a ny wa rr an ti e s or r ep r e s en t a t io n s ( e xpre ss or i mp l i ed ) a s to the co mp l e t ene ss or a cc ura cy of this i n fo r m a tion or a cc ep t r e s p o n s i b ility for e rrors . T he i n for ma t i on p r e s en t e d i s a su m ma ry p r o v i de d for ill us t r a ti v e purp os e s o n ly an d d o e s n ot co n stit u te a n exhaus t i v e exp l ana ti o n of the to p ics co ve r e d h e r e i n . C ont a ct S o un d P o i n t Meridian Ca p ital (N YS E: S PMC) 3 7 5 Park Ave. 34 th Floor New Y or k , NY 10 1 52 Sou n d P oi n t Me ridia n Capital In ves t o r R el atio n s ir @ s o un d p oi n tmeridi a n c a p . c om ( 833 ) 217 - 6665

 

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S P MC L is ted N Y SE Soun d P oint M e r idi a n Capit al Sep t e m be r 2024 Impo r ta n t I n f orm at i on T his ma t e r i a l i s p ro v i d e d for g ene r a l a n d edu c a t i on pu r p os e s o n l y , i s n ot i n t e n de d to p ro v i d e l e g a l or t a x adv i c e , d o e s not co n stit u te a soli c it a t i on of a n off e r to b u y or s e ll SP M C’s sh a r e s, an d i s n ot for us e to av oid an y pena lti e s th a t ma y be i m p os e d u n de r U . S . f ede r a l t a x l aw s . Co n t a ct y o u r a t tor ne y or oth e r adv isors r e g a r d i n g y o u r s pe cif i c l e g a l, i n ve st men t or t a x sit ua tio n . I nve sti n g i nv ol ve s ris k . SP M C i n ve sts p r i ma r ily i n b e low i n ve s t men t gr ad e i n str u men ts, whi c h a re co mm o n ly r e f e rr e d to a s “high y i e l d ” s e c uri t i e s or “ j u nk ” b o nd s . SP M C i n ve s t s a sig n ific an t p orti o n of its a ss e ts i n C L O j un ior d e bt an d e q ui ty s e c u r i t i e s, whi c h o ft e n i n volve ri s k s th a t a re d iff e r en t from o r m ore p r o n o u n c e d th a n r is k s a sso c i a t e d wi th oth e r t ype s of cr ed it i n stru men ts . B e c aus e of the ris k s a ssoci a t e d wi th i n ve sti n g i n high y i e ld s e curiti e s, a n i n ve st men t i n SP M C sho u ld be co n si de r e d s pe c u l a ti ve . I nves tor s sh o uld ca re f ully con s i der t he i nves t ment ob je ct i ve, r i s k s, c h a rges an d e x p en s es o f SP M C b e fo re i nves t i n g . SP M C’s fili n gs with the S E C co n t a in i n fo r ma t ion a bo u t S P M C’s i n ve s t men t o b je ct i ve s, ris k s, ch a rg e s an d expen s e s a s we ll a s oth e r i n for ma t ion a bo u t S P M C . T h e se fili n gs sho u ld be r e a d c a r e f ul ly be fore i n ve st i n g . SP M C’s f i l i n gs wi th the S E C ma y be fou n d on the S E C’s w e bsi te ( www . s e c . go v ) or on SP M C’s w e bsi te ( www . sou n dp oi n t me r idia n c ap . co m ) . From t i m e to t i m e , SP M C ma y h a v e a r e gistr a t i on st a t em e n t r e l a ti n g to o n e or m ore of its s e c uri ti e s on file wi th the S E C . A n y r e gistr a t ion st a t e m en t th a t h a s n ot ye t b ee n de cl a r e d e ff e cti v e by the S E C, an d an y p ros pe ct u s r e l a ti n g th e r e to, i s n ot c o mp l e te an d m a y be ch a n g ed . A n y s e c uri t i e s t h a t a re the sub j e ct of such r e g istr a tion s t a t emen t may n ot be sold un til the r e gistr a tion st a t emen t h a s b ee n de cl a r e d e ff e cti v e by the S E C . T he i n fo r ma t i on an d co n t en t h e r e in a re the p ro pe rty of the Co mpa n y . A n y unau thori z e d d iss em i n a t i o n , co py i n g or us e of this p r e s en t a tion i s strictly p rohi b it e d a n d ma y be in v iol a tion of l a w . Ri s k s As s o c iat ed w it h I n v es t ment i n S P MC . S P M C i nve sts p r i ma rily i n e q ui ty t r an ch e s of coll a t e r a li z e d lo a n o blig a t io n s, o r “CLOs . ” I nve stors sh o u ld co n s i de r th ei r i n ve s t men t go a ls, ti m e hori z on an d risk tol e r an ce b e fore i n ve sti n g i n s e c uri ti e s of SP MC . A n i n ve st m e n t i n s e c uri t i e s of SP M C i s n ot app ro p r i a te for a ll i n ve stors an d i s n ot i n t e nd e d to be a co m p l e te i n ve s t men t p rogr a m . Sh a r e s of co m m on stock of clos e d - en d man a g e m e n t i n ve s t men t c o mpa n i e s th a t a re list e d o n a n ex ch an ge fr e q u en tly tr ad e a t a discount to th e ir N A V . If SP M C's co mm on stock tr ade s a t a d isco u n t to its N A V, i t wi ll li k e ly i n cr e a s e the risk of loss for pur ch a s e rs i n t h is o f f e ri n g . In ad d iti o n , i n ve s t i n g i n o u r c o m m on sto c k m a y be co n s i de r e d s pe c u l a ti v e a n d i n v ol ve s a high d e gr e e of ris k , i n cl u d i n g the risk of a subst an ti a l loss of i n ve s t men t . B e fo r e pur c h a s i n g an y sh a r e s of co m m o n sto c k , a n i n ve stor sho u ld r ea d the d isc ussi on of the p ri n ci pa l ris k s of i n v e sti n g i n SP M C's co mm on stoc k , which a re su mma ri z e d i n “Risk F a ctors” i n SP M C's p ros pe ct u s . AB OU T S OUN D P OIN T C AP ITAL So un d P o i n t C a p it a l Man a g e men t, L P i s a $ 43 + billion a ss e t m a na g e men t fi r m fo u nde d i n 2 0 08 wi th a pa rtic u l a r expe rti s e i n cr ed it str a t e gi e s . So u n d Po i n t’s p ri ma r y i n ve s t men t ob je c t i ve s a cross its p ro du cts a re to (i ) p r e s e r v e c api t a l i n a ll ma r k e t co n d iti o n s an d (ii ) g ene r a te a ttr a cti v e r a t e s of r e t ur n wi th low v ol a tility . So un d Poi n t w a s fo unde d by St ep h e n K e tch u m an d p r i n c ipa l s of Sto n e Poi n t C a p i t a l (ww w . sto nep oi n t . c o m) , wi th m in o r i ty i n ve s t me n ts from B l u e O w l G P Str a t e g i c C api t a l ( f k a D ya l C api t a l ) , a divi s i on of B l u e Owl C ap it a l I n c . , an d Assur e d G ua r a n ty Lt d . Sound P o i n t m a na g e s m o n e y on b e h a lf of i n stit u t i o n s, pen s i o n s, fo unda t i o n s, i n sur an ce c o m pa n i e s, wea lth mana g emen t fi r m s, f am ily offic e s a nd high ne t w orth i n d i v i dua ls . F i r m - wid e A U M fig ure s ( p ro v i d e d a s of 6 / 30 / 2 0 2 4 ) d o n ot i n cl ud e r ede m p ti o n s r e c e i ve d or liqui da t io n s th a t ma y be i n e ff e ct a f t e r 6 / 30 / 2024 . F i r m - w i d e a nd str a t e gy l eve l AUM fi g ure s i n clude (wh e re r e l evan t) c o mm itt e d c a p it a l to d iscr e t i o na ry d r a w - d o w n v e hicl e s th a t h a v e n ot ye t b e e n d r a wn , en titi e s th a t a re n ot o p e n to ne w i n v e stors and/ or a re i n the p roc e ss of wind i n g d o w n an d r ep r e s en ts the clos e d tot a l co m m it m e n t of a ll lo a ns mana g e d by So u n d Poi n t C o m me r c i a l R ea l E st a te Cr ed it a s of 6 / 30 / 2024 , i n cl u d i n g i n h e r it e d p ortfolios ma n a g e d th a t we re ori g i n a t e d by an oth e r mana g e r . Pl ea se a lso note th a t F i r m - w i d e AUM i n cl ude s a ss e ts a ttribut a ble to I n Poi n t Co m me r c i a l R ea l E st a te I n co me , I n c . , a r ea l e st a te i n ve st m e n t trust (the "R EIT" ) sub - a dv i s e d by SP C RE I n Po i n t A d v isors L L C, a subs i d i a ry of So un d P o i n t w h ich i s ex e mp t fr o m r e g i s tr a tion a s an i n ve s t men t ad v is e r wi th the S E C . T he R E IT p ortfolio, whi c h r ep r e s en ts a ma t e r i a l p ortion of So un d P o i n t’s co m me r c i a l r ea l e st a te s tr a t e g y 's AU M , p ri ma rily c o n sists of first m ortg a g e lo an s, mezza n i n e lo an s, an d a n y c urren t o r f u t ur e r ea l e st a te o wned , d o e s n ot mee t the de fi n i t ion of a s e c uri t i e s p ortfolio an d a s such, d o e s n ot t e ch n ic a l l y q ua lify a s an adv iso r y cli en t . T he R E IT p ortfolio’s si z e i s c a lc u l a t e d usin g fi n an c i a l da ta p ro v i de d by the R E I T 's una ffili a t e d i n ve s t men t a dvis e r, I n l an d I n Poi n t A d v isor, L L C, a nd i n cl ude s the unp a id p ri n c i p a l b a l an ce of de bt i n ve st men ts, the f a ir va l u e of an y r ea l e st a te o wned , c a sh an d c a sh e q uiva l en ts an d a cco un ts for the c urren t expe ct e d cr ed it loss r e s e r ve . A dd itio na l i n for ma tion a bo u t the R E IT i s pu blicly a v a ilable on its we bsite a t htt p s : // i n l and - i n ve st men ts . c o m/ fo r m s - l it e r a t ure / i n p o i n t . Conf l ict s o f I nteres t . So un d P o i n t ma n a g e s va rious f und s an d str a t e gi e s, an d t he mana g e m e n t of th e se f und s an d str a t e gi e s c a n gi v e rise to co n flicts of i n t e r e st b e t wee n the i n ve stors of a s i n gle f un d or str a t e gy a n d d iff e r i n g f u n d or str a t e g y . B e c aus e S o un d P o i nt p ro v i de s c o n c urren t ad v iso r y s e r v ic e s to o u r i n ve stors for whi c h t h e i n ve s t men t ma n da t e s, co - i n v e s t men t o pp ort u n i t ie s, co m pe n s a t i on an d f e e a r ra n g e m e n ts (i n c l udi n g wi th r e s pe ct to pe rfor ma n ce f e e s an d f e e o f fs e ts) an d oth e r c i rc u m st a n c e s di ff e r from str a t e gy to str a t e g y , the p ot en ti a l for So un d P o i n t to r e c e i v e gr ea t e r f ee s from c e rt a in funds or str a t e g i e s cr ea t e s a p ot en t i a l co n flict of i n t e r e st wi th r e s pe ct to the a lloc a tion of i n ve s t men t o p p ort u n iti e s, a s f und s or str a t e gi e s th a t pa y hi g h e r f ee s ma y cr ea te i n c en ti ve s to d ir e ct i nve s t men t i d ea s to, and/ or to a lloc a te i n ve st men ts i n f av or o f s u ch a f un d or str a t e g y . In add itio n , So u n d Po i n t, from ti m e to t i m e , a lso en t e rs i n to a cco un ts d ir e ctly or i n d ir e ctly wi th si n gle or m u lti p le i n ve stors th a t co mm it si g n i f ic an t c ap it a l i n to a pa rtic u l a r f un d or str a t e gy an d a c r oss the bro ade r S o u n d P o i n t p l a tfo r m . S u ch a rr an g e men ts oft e n i n cl ud e So u n d P o i n t g r a nti n g c e rt a in p r e f e r en ti a l t e r m s to th e se s pe ci f ic i n ve stors, i n cl u d i n g c o - i nve s t men t ri g ht s , a wa i ve r o r r edu ction of ma n a g e men t f e e s or pe rform a nce f ee s or c a rri e d i n t e r e s t, a bl ende d man a g e men t f ee , and/ or pe r form a nce f e e or c a rri e d i n t e r e st r a t e s th a t a re lo we r th a n those app lic a ble to the r e s pe cti v e f un d or str a t e g y i n whi c h those i n ve stors a re curr e ntly i n ve st ed . T he p oli c i e s a nd p roc edure s i mp l e men t e d by So un d Poi n t from t i m e to ti m e ( in c l ud i n g an y th a t ma y be i mp l e men t e d i n the f u t ure ) to m iti g a te p ot en ti a l co n flicts of i n t e r e st and add r e ss c e rt a in r e g u l a tory r e q u ir e m e n ts ma y r edu ce the sy n e r g i e s a cross So un d Po i n t’s a r ea s of o pe r a tion an d expe rtise t h a t a So un d Po i n t str a t e gy ma y t yp ic a lly expe ct to c a ll up on for the purp o s e s of i mp l emen ti n g the str a t e gy an d a chi e v i n g the pe rfor man ce go a l s . Fo r wa r d - Loo ki ng S tate m e n t s . T h is m o n thly news l e tt e r ma y co n t a in “forw a r d - l oo k i n g st a t e men ts” wi t h in the me a n i n g of the Pri va te S e c uri t i e s L it i g a ti o n R e fo r m Act of 1 9 95 , a s amen d ed . T he C o mpa n y use s w or d s such a s “m a y,” “ m i ght,” “will,” “i n t end s,” “shoul d ,” “coul d ,” “c an ,” “woul d ,” “ e x pe cts,” “b e li eve s,” “ e sti ma t e s,” “ an tici pa t e s,” “ p r ed icts,” “ p ot en ti a l,” “ p l an ” an d si m ilar exp r e ss io n s to i den tify forw a rd - loo k i n g st a t e m en t s . St a t emen ts oth e r th a n st a t emen ts of historic a l f a cts i n cl ude d h e r e in m a y co n st i t u te forw a rd - loo k i n g st a t e men ts an d a re n ot g ua r an t e e s of f u t ur e pe rfor man ce or r e sults an d i n v ol v e a num b e r of ris k s an d un c e rt a i n t i e s . Act ua l r e sults ma y d iff e r ma t e ri a lly from those in the forw a rd - loo k i n g st a t e men ts a s a r e s u lt of a num b e r of f a ctors, i n cl u d i n g tho s e de s c rib e d i n the C o mp a ny ’s fili n gs w ith the S E C . T he C o m pan y u nde rt a k e s n o du ty to upda te an y forw a r d - l oo kin g st a t eme n t mad e h e r e i n . A ll forw a r d - l oo k i n g st a t eme n ts s pea k o n l y a s of the da te of th i s p r e ss r e l ea s e . C ont a ct S o un d P o i n t Meridian Ca p ital (N YS E: S PMC) 3 7 5 Park Ave. 34 th Floor New Y or k , NY 10 1 52 Sou n d P oi n t Me ridia n Capital In ves t o r R el atio n s ir @ s o un d p oi n tmeridi a n c a p . c om ( 833 ) 217 - 6665

 

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