SVP Global closes Strategic Value Special Situations Fund V at $5 billion hard cap

Aug 4, 2021 | News

Strategic Value Partners and its affiliates (SVP Global), a global investment firm focused on distressed debt, event-driven investments, special situations and private equity opportunities, has held the successful final closing of Strategic Value Special Situations Fund V (SVSS V) at its hard cap of USD5bn.

This fund closing, when combined with SVP Global’s existing portfolios and other fund raises, including last summer’s approximately $1.7 billion Dislocation Fund, has increased SVPGlobal’s total assets under management to more than $17.5bn, making it one of the largest global investors in the distressed debt and special situations space.

SVSS V, which completed fundraising only three months following its first close, received significant demand beyond its hard cap and closed well above the Fund’s $4bn  target with support from a diverse and global base of existing and new investors. The Fund also exceeded the size of its predecessor, SVSS IV and associated vehicles, which closed in April 2018 at the hard cap of $2.85bn.

 

Like its predecessor Special Situations Funds, SVSS V is focused on restructurings, event-driven investments, special situations and trading-oriented opportunities in North America and Europe. SVSS V already has made or announced investments in the basic industrial, aviation and real estate sectors.

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Victor Khosla, Founder and Chief Investment Officer of SVP Global, says: “We are grateful for the trust and confidence investors from around the world have placed in our team and time-tested investment strategy. This successful and expeditious closing of our fifth special situations fund validates the consistency of our approach and our proven record of generating strong returns across market cycles. We are pleased to welcome new investors as we continue to expand our many long-standing relationships.”

SVPGlobal sources a majority of its investments directly, purchasing debt from banks and funds. The firm also takes an active role with most of its investments, regularly acquiring controlling equity interests through credit restructurings. SVP Global has an extensive track record of driving value creation in majority-controlled businesses through operational and strategic improvements. The firm is continually developing how it incorporates ESG considerations across its investment process, including by integrating standards across majority-owned portfolio companies.

“Over the past two decades, the SVPGlobal team has developed a differentiated ‘three pillar’ approach to distressed debt investing that combines aspects of traditional distressed credit and private equity investment strategies across traditional corporate restructurings as well as special situations opportunities,” says Khosla. “To support this approach, we’ve undertaken a substantial talent expansion to approximately 130 employees worldwide, including growing our investment team to approximately 50, representing a 45 per cent increase since April 2018. Our ability to deploy $7.5bn since Q1 of 2020, and in fact increase our pace of investment in 2021 as the world thankfully recovers from the Covid-19 pandemic, is a testament to the strength of our team and our ability to identify opportunities others cannot access.”

Source: Private Equity Wire

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