SVP holds $1bn first close on Fund IV

he amount includes $350m of reserved capacity for a fund-of-one LP relationship.

Strategic Value Partners has held a first close on its fourth special situations fund on around half of its overall target, sister publication Private Equity International has learned.

Strategic Value Special Situations IV has raised a little over $1 billion, which includes $350 million of reserved capacity for a “fund-of-one” LP relationship, according to a source with knowledge of the matter. It is not clear whether the “fund-of-one” pool has the same terms and conditions as the main fund. It is understood the pool will participate in all investments made by the main fund. 

A filing with the US Securities and Exchange Commission revealed that SVP had raised $676.8 million for the fund.

SVP declined to comment.

The fund is targeting $1.75 billion plus the extra $350 million of reserved capacity for a fund-of-one, for a total of $2.1 billion. The private placement memorandum for Fund IV was issued in December 2016, the source added.

SVP’s previous fund was also structured this way. Fund III closed on $1.31 billion in aggregate commitments with an additional $250 million reserved capacity for a fund-of-one LP relationship for a total of $1.56 billion, as reported by PEI.

An investor source indicated that Fund III is about 82 percent deployed.

Founded in 2001 by Victor Khosla, SVP focuses on distressed, “deep-value” opportunities, typically taking an active role in transactions, including driving the financial restructuring of companies facing bankruptcy, on ad hoc or formal creditors’ committees, or leading the turnaround of a business by driving the strategic and operational direction of the company, according to its website.

The firm has around 35 investment professionals across its main offices in Greenwich, Connecticut, London, Frankfurt and Tokyo.

At the end of March SVP-backed recycling company Cory Riverside Energy completed a £520 million ($670 million; €606 million) debt refinancing package for its Riverside Energy from Waste plant in Belvedere, London. Existing senior term debt was refinanced with a £420.5 million multi-tranche senior facility and a £98 million junior facility.