SVPGlobal eyes $1.75 bln-plus for fourth special-situations fund

  • Heads for first close by end of March
  • Could collect more than $1 bln in first close
  • Fund III about 78 pct deployed

SVPGlobal, the distressed-investment firm run by Victor Khosla, is back in market with its fourth fund targeting $1.75 billion, plus $350 million of reserve capital for a fund-of-one LP relationship, according to investor letters.

Strategic Value Special Situations IV is “on track” to close on more than $1 billion, including reserve capacity for the fund-of-one, by the end of March, according to one of the letters that published in February.

SVPGlobal, Greenwich, Connecticut, closed Fund III in 2014 on about $1.3 billion, as well as $250 million of reserve capacity for a fund-of-one, for a total of about $1.56 billion, SVPGlobal said then. Fund III, which is about 78 percent deployed, beat its $1 billion target. The firm raised $918 million for Fund II in 2012.

Fund III was generating an 11.1 percent net internal rate of return and a 1.2x net multiple as of Dec. 31, 2016, according to alternative-assets-data provider Preqin. Fund II was producing a 13.7 percent net IRR and a 1.6x net multiple, Preqin said.

SVPGlobal targets investments in distressed bank debt and bonds, other distressed loans, par and non-par high-yield securities, trade claims, liquid and illiquid distressed assets, including real estate, reorganization equities, derivative instruments and other assets.

SVPGlobal, which Khosla launched in 2001, focuses mostly on the U.S. and Europe. Khosla previously worked in distressed investing at Citibank, Merrill Lynch and Cerberus Capital Management.

Last year, SVPGlobal put U.K. food-packaging group Linpac up for sale, Reuters reported. The deal was valued at $556 million at the time and was led by Rothschild, Reuters said. The status of the deal is unclear.

Action Item: SVPGlobal’s Form ADV:

Photo of Greenwich, Connecticut, courtesy Denis Tangney Jr/iStock/Getty Images