Sound Point Meridian slashes dividend for Q1 2026

Sound Point Meridian, a New York-based alternative asset manager, announced a 40% reduction to its quarterly dividend for the first quarter of 2026, citing weaker portfolio performance and liquidity constraints.

The firm disclosed the dividend cut in a regulatory filing on Friday, reducing the payout to $0.25 per share from the prior $0.42 per share. The decision follows a period of underperformance in its credit and real estate investments, which have weighed on earnings amid higher financing costs.

Sound Point Meridian reported total assets under management of $11.2 billion as of the end of the third quarter of 2025, down from $12.5 billion at the start of the year. The decline reflects outflows and valuation adjustments across its core strategies.

Chief Executive Officer Daniel Paris stated that the dividend reduction aligns with the firm’s commitment to preserve capital and maintain financial flexibility amid market volatility. Paris added that the move was necessary to support long-term growth initiatives and reduce leverage ratios.

The dividend cut takes effect for the quarter ending March 31, 2026, with the first reduced payout scheduled for distribution on April 15, 2026. The announcement follows a broader trend among asset managers adjusting distributions in response to tighter credit conditions and slower deal flow in private markets.

Sound Point Meridian’s shares were down 2.1% in pre-market trading on Friday, reflecting investor reaction to the news.