Strategic Value Partners closed its fourth fund on its $2.85 billion hard cap, including $350 million of reserve capacity for a fund-of-one relationship. Strategic Value Special Situations Fund IV closed above its original $2.1 billion target. The firm closed Fund III in Nov. 2014 on $1.56 billion.
Strategic Value Partners, LLC and its affiliates (“SVPGlobal”), a global investment firm focused on distressed and deep-value opportunities, today announced the successful final closing of Strategic Value Special Situations Fund IV (“SVSS IV” or the “Fund”) at its hard cap of $2.85 billion, including $350 million of reserved capacity for a “fund of one” relationship.
SVSS IV received significant demand beyond its hard cap and closed well above the Fund’s $2.1 billion original target, with support from a diverse and global base of both existing and new investors. The Fund also exceeded the size of its predecessor, SVSS III, which closed in November 2014 on a total of $1.56 billion, including $250 million reserved capacity for a “fund-of-one”.
SVSS IV is structured similarly to the earlier Special Situation Funds and follows the same investment strategy, investing primarily in the distressed debt of middle-market companies and assets where SVPGlobal is able to exert meaningful influence in both financial restructurings and operational improvements.
SVPGlobal has three highly successful predecessor funds: SVSS I with net IRR/net MOIC of 16.3%/2.0x; SVSS II with net IRR/net MOIC of 15.3%/1.8x; and SVSS III which just started its realization period with net IRR/net MOIC of 15.0%/1.4x (all as of December 31, 2017). SVPGlobal believes there is further value in each remaining portfolio, especially SVSS II and SVSS III. According to the latest released Cambridge Associates LLC Distressed Securities Benchmark, SVSS I is a top quartile fund for its 2008 vintage for multiple while funds SVSS II and SVSS III are top quartile for their respective vintages of 2010 and 2013 for both IRR and multiple.
SVPGlobal invests globally, with a particular focus on the U.S. and Europe. The firm has invested more than $27 billion of capital since inception in 2001, including $12 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 and Frankfurt in 2005.
Victor Khosla, Founder and Chief Investment Officer of SVPGlobal, said: “We are happy that our investor base has continued to expand with SVSS IV, as new investors joined many long-standing relationships. We remain extremely grateful for the trust these investors have placed in the SVPGlobal team and our strategy.”
SVSS IV is active and has already made or announced investments in: Texas State Highway 130 (SH-130), a toll road running from Austin to San Antonio; Auto-Estradas Douro do Litoral, a Portuguese toll road; Syncora Holdings, a monoline financial guarantee insurance provider; GenOn, a Houston-headquartered energy generator; and Vita Group, Europe’s leading supplier of polyurethane foam products.
SVPGlobal was founded in 2001 by Victor Khosla. The firm focuses purely on distressed debt, all the way from trading oriented strategies to influence and control, and is global with primary offices in Greenwich (CT), London, Frankfurt and Tokyo. The firm currently has approximately $8.3 billion in assets under management. SVPGlobal seeks to create value in its investments through its substantial industry, restructuring and operating experience.
For additional information, please go to http://www.svpglobal.com/.