Fear & Loathing in 2023 with Victor Khosla

FEG Insight Bridge

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!
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Chapters

1. Intro (00:00:00)

2. Episode overview (00:00:33)

3. Introduction to SVP (00:01:39)

4. How Victor got into distressed debt investing (00:04:48)

5. What differentiates SVP from competitors (00:07:28)

6. The social good of distressed debt investing (00:11:19)

7. Pursuing ESG through distressed debt (00:13:09)

8. Investing in the U.S. vs. Europe (00:17:36)

9. Sourcing European distressed debt (00:22:02)

10. Sectors Victor finds particularly exciting (00:27:25)

11. Changes in the corporate balance sheet in the current cycle (00:31:15)

12. The current players in the distressed debt makers (00:34:57)

13. How SVP utilizes private lending (00:40:03)

14. Victor's hobbies and philanthropic causes (00:44:14)