Deep-value strategy focusing on distressed debt and debt-for-control in Europe and North America

An investment in the "Strategic Value Special Situations Fund V" offers Kontora clients an attractive portfolio complement to pro-cyclical investment strategies. This strategy has already proven itself over many years with an excellent track record across economic cycles.

The fund focuses on distressed debt and debt-for-control investments in sectors with a high degree of physical and tangible assets ("deep value" - land, manufacturing equipment, real estate). Here, the manager buys cheaply via the secondary market into the debt capital of companies where restructuring is likely. Due to the ongoing economic turmoil caused by the pandemic, an attractive market ratio is unfolding.

The goal is to build a portfolio diversified by region and sector with 15-20 core positions within four years and to divest after a total fund life of seven years with a target net return of 15%.

"As early as 2017, we have established a relationship with SVP and have followed its development through numerous points of contact. With years of experience in distressed debt and debt-for-control, the fund manager has a compelling track record and we are now pleased to provide our clients with this investment with a flexible strategy and proof-of-concept. It is a truly unique best in class manager, that nicely complements many portfolios of our clients," said Dr. Patrick Maurenbrecher, Managing Partner and CIO of Kontora.

SVP Global

SVP Global is an independent manager with approximately $11 billion in assets under management. Founded in 2001 by Victor Kohsla, SVP Global has successfully invested four funds in its core strategy. Since its predecessor fund, the deal team has grown by 50% to 127 employees and is represented in four locations in the USA, China and Europe. The manager is differentiated by its organizational set-up with extensive team resources, an excellent sourcing network and a dedicated focus on operational improvements of the target companies.