Strategic Value Partners closed its Strategic Value Dislocation Fund on more than $1.65 billion. The fund will invest in opportunities created by the pandemic-fueled market dislocation. The fund has already deployed 25 percent of its capital, including in investments in European logistics company Swissport and U.S. roofing and drainage products maker OmniMax International.
Strategic Value Partners, LLC and its affiliates (“SVPGlobal”), a global investment firm with over $9 billion of assets under management, today announced it has closed a custom mandate, the Strategic Value Dislocation Fund, L.P., with more than $1.65 billion of investor commitments to address investment opportunities created by the recent market dislocation.
The custom mandate will operate across SVPGlobal’s distressed debt platform, with the flexibility to take advantage of an evolving set of opportunities, from liquid- and event-driven trading through to debt-for-equity restructurings.
More than 25% of the custom mandate’s capital has already been deployed, including investments in the European logistics company Swissport, which has agreed to implement a debt-for-equity restructuring led by SVPGlobal, and U.S. roofing and drainage products manufacturer OmniMax International, which has agreed to be acquired by funds managed by SVPGlobal.
On September 30, SVPGlobal held a final close for the custom mandate, which included commitments from 15 institutional investors, approximately half of which are existing relationships and half new clients for the firm. The capital was raised in four months and entirely through virtual meetings. The new custom mandate is separate from, but complements and adds further flexibility to, SVPGlobal’s Strategic Value Restructuring Fund, and its Strategic Value Special Situations funds. SVPGlobal closed its last Special Situations Fund, Fund IV, in April 2018 at its $2.85 billion hard cap.
Victor Khosla, Founder and Chief Investment Officer of SVPGlobal, said: “Over the past six months, the market dislocation has created a once in a decade opportunity and substantially expanded the range of compelling distressed debt investments. We are pleased to receive the backing of a number of both existing and new large investors in this custom mandate, which will take a hybrid approach, with a mix of investments ranging from more tactical trades through to taking control of and supporting companies that have sound underlying businesses but overleveraged balance sheets. As we see this to be a compelling opportunity set that will extend several years, we have increased our resources accordingly. This has included expanding our investment team to 49 people, up by more than a third since we launched our last fund, and our total team to 121 people.”
SVPGlobal invests globally, with a particular focus on the U.S. and Europe. The firm has invested more than $30 billion of capital since inception in 2001, including $14 billion in Europe, where it was among the earliest U.S. firms in the distressed arena to establish a presence, opening in London in 2004.
SVPGlobal is a global investment firm with more than $9 billion in assets under management. The firm, established by Victor Khosla in 2001, has 121 employees, including 49 investment professionals, across its main offices in Greenwich (CT), London and Tokyo. Learn more at www.svpglobal.com.