Investment firm Strategic Value Partners LLC (SVP) has closed a $1.31 billion fund that will focus on distressed opportunities.

The fund, Strategic Value Special Situations Fund III, closed above its $1 billion target.  The new fund has the same focus as SVP's previous two funds, and will invest in the distressed debt of middle-market companies and assets that may require financial restructurings and operational improvements.

The fund will focus on global investments, especially those in Europe, where SVP says it has experienced increasing sales by banks of distressed assets and loans. SVP generally focuses on distressed and so-called “deep-value” opportunities.

Greenwich, Connecticut-based SVP has invested more than $20 billion in capital since it was formed in 2001, including $9 billion in Europe. The firm has offices in London and Frankfurt, Germany. The firm has about $5 billion in assets under management.

The news comes as private equity firms are experiencing one of the best fundraising environments in years. 2014 has hosted scores of private equity fund closings, including Brentwood Associates' latest fund, which closed with $688 million in commitments, and Cressey & Co.'s fifth fund, which closed with $615 million in commitments. 

 

Restructuring