Founder and CIO of Strategic Value Partners, Victor Khosla has seen significant shifts in the distressed investment landscape since he first founded SVP in 2001. In this episode of the FEG Insight Bridge, Victor shares his insights on how SVP has effectively differentiated itself from other private credit firms and why focusing on operational improvements rather than financial engineering is a better play for strong returns.
He also discusses the value of sourcing distressed debt opportunities directly (a unique approach) and how distressed debt investing can be used to advance social good. Finally, he explores the role of rescue financing in scaffolding companies’ success and which sectors are looking most enticing in the face of oncoming recession. You won’t want to miss this exciting episode!
Chapters
00:00:00 Intro
00:00:33 Episode overview
00:01:39 Introduction to SVP
00:04:48 How Victor got into distressed debt investing
00:07:28 What differentiates SVP from competitors
00:11:19 The social good of distressed debt investing
00:13:09 Pursuing ESG through distressed debt
00:17:36 Investing in the U.S. vs. Europe
00:22:02 Sourcing European distressed debt
00:27:25 Sectors Victor finds particularly exciting
00:31:15 Changes in the corporate balance sheet in the current cycle
00:34:57 The current players in the distressed debt markets
00:40:03 How SVP utilizes private lending
00:44:14 Victor’s hobbies and philanthropic causes