Hedge Funds

SVP prepares to launch special situations fund

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Strategic Value Partners, the New York-based hedge fund group headed by Victor Khosla that already runs some $1.7 billion in distressed debt and high-yield strategies, is gearing up to add a third strategy.

SVP's next step is expected to be a global opportunities fund with limited capacity that will focus primarily on a special situations Europe and Japan. The firm is targeting assets of up to $250 million, and already has commitments of $100 million.

Khosla has a terrific record on the flagship SVP Restructuring fund, now running about $1.3 billion, with a compound return of about 23%. His $350