Sound Harbor Partners targets $350 mln for middle-market credit

  • New York-based firm raising credit fund
  • Firm founded in 2009 by Carlyle, Blackstone execs
  • Sound Harbor lends $10 mln to $50 mln EBITDA companies

Sound Harbor Partners, the New York credit specialist founded by a former Carlyle Group executive, plans to raise $350 million for its second credit fund, according to a source.

The firm filed a Form D for Sound Harbor Capital Solutions Fund II LP in November with $50 million in commitments. How much the firm has raised since then is unclear.

The firm’s capital-solutions unit specializes in private credit for middle-market businesses with Ebitda of $5 million to $100 million, according to its website.

Sound Harbor typically invests $10 million to $50 million in each deal, including corporate loans, direct lending, distressed debt and opportunistic credit.

Recent investments include Tecumseh Products Co, Aurora Diagnostics, Veritas Steel and Precision Valve Corp.

Sound Harbor also runs a loan business, including collateralized loan obligations business and separately managed accounts. The firm said it manages $1 billion of assets in this bucket.

Michael Zupon and Dean Criares, both partners, lead the New York firm. From 1999 to 2009, Zupon worked at Carlyle and founded its leveraged-finance business, according to Sound Harbor’s website.

Criares, who joined the firm in 2012, previously worked as senior managing director and partner at Blackstone Group. He founded Blackstone Debt Advisors and was co-head of the GSO Debt Funds Group.

The firm didn’t return a phone call.

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