Distressed debt investor Strategic Value Partners has raised $900 million of a targeted $1 billion for its third special situations fund, a source familiar with the matter said.
The Strategic Value Special Situations Fund III was launched in 2013 and held an initial close on $322 million in December 2013. It is currently investing in North America and Western Europe, according to PDI Research & Analytics.
SVP declined to comment.
The fund is the third distressed fund SVP has raised since 2009, when it launched the Strategic Value Special Situations Fund targeting $1 billion but only raised approximately $346 million, according to PDI Research & Analytics. Investors included two fund of fund managers: the New York-based NB Alternatives and Raleigh-based Hatteras Investment Partners. It had an investment remit in Asia, as well as North America and Europe.
Strategic Value Special Situations Fund II launched in 2011 and fared much better, raising approximately $918 million and surpassing its $600 million target. Investors in that fund included Taiwan bank Mega International Commercial Bank.
The Greenwich, Connecticut-headquartered manager invests in the distressed debt of companies with a turnaround focus and has a significant European presence. Half of the firm’s 35 investment professionals are based in Europe, according to its website.
Founded in 2001 by Victor Khosla, a former co-head of distressed products at Merrill Lynch, SVP has amassed approximately $5 billion in assets across hedge fund and private equity vehicles. It has offices in Greenwich, London, Frankfurt and Tokyo.
The firm invests in loans to middle-market companies where it can “typically exert significant influence, or in some circumstances, obtain outright control,” according to its website.
Having invested in the debt of leading German plastic packaging company Klockner Pentaplast in May 2009, SVP led a recapitalisation in June 2012 after taking control of the firm’s equity from the Blackstone Group. It refinanced the company at par in May 2013 and is now readying the firm for a sale, it is understood.