Khosla Closes Distressed Debt Fund At $918M

Feb 2 2012 | 8:20am ET

Merrill Lynch & Co. vet Victor Khosla’s Strategic Value Partners has closed its Strategic Value Special Situations Fund II at $918 million.

The fund had an original target of $600 million.

According to an SVP statement, the new fund will follow the same strategy as its predecessor, SVSS I, investing in “distressed and deep value corporate opportunities in the middle-market, and by exerting material influence, both during and after restructuring.” SVSS II expects to generate returns over two to three years.

The fund will invest globally but expects to focus outside the U.S., given the opportunities it sees in Europe.

SVP has offices in Greenwich, Conn.; London; Frankfurt; and Tokyo, employing more than 100 individuals, including an investment team of 40 professionals, half of whom are based in the European offices.

Said SVP founder and CIO Khosla in a statement: “I would like to thank our investors for their support of SVSS II. SVP has an exceptional pipeline of deals that we estimate has grown 2.5 times in the last 18 months. We are excited by the opportunities we see for SVSS II.”

Strategic Value Partners was founded in 2001 and has approximately $4 billion in assets under management.

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