SVPGlobal raises $5bn for special sits fund

The investor's fifth special situations vehicle saw huge demand above its hard-cap.

SVPGlobal has closed its latest special situations fund at its $5 billion hard-cap, just three months after it held its first close.

The vehicle, Strategic Value Special Situations Fund V, had an initial target of $4 billion and its close brings SVP’s total assets under management to $17.5 billion.

The firm reported that it received significant demand beyond the fund’s hard-cap from a diverse base of existing and new investors from all across the world. It is almost double the size of its predecessor fund, which closed on $2.85 billion in April 2018.

The fund will focus on restructurings, event-driven investments, special situations and trading-oriented opportunities in both North America and Europe. The fund has already made investments in the industrial, aviation and real estate sectors.

SVPGlobal said it sources the majority of its investments directly, purchasing debt from both banks and funds. It also takes an active role in its investments, acquiring controlling equity interests through credit restructurings.

“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,” explained Victor Khosla, founder and CIO of SVPGlobal.

To handle the increased size of the firm’s activities, SVP has increased its employee numbers 45 percent to 130 worldwide with an investment team of approximately 50 people.

The target IRR for the fund was not disclosed but its predecessor vehicle delivered a net IRR of 31.9 percent while SVSS III delivered 16 percent.