SVPGlobal, a global investment firm focused on distressed and deep-value opportunities, has held the final closing of Strategic Value Special Situations Fund IV (SVSS IV) at its hard cap of USD2.85 billion, including USD350 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 USD2.1 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 USD1.56 billion, including USD250 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 per cent/2.0x; SVSS II with net IRR/net MOIC of 15.3 per cent/1.8x; and SVSS III which just started its realisation period with net IRR/net MOIC of 15.0 per cent/1.4x (all as of 31 December 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 US and Europe. The firm has invested more than USD27 billion of capital since inception in 2001, including USD12 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, says: “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.”
