Victor Khosla, the founder of Strategic Value Partners LLC, is actively recruiting in a promising credit market environment, which is considered the most favorable for opportunistic investors in the past decade.

Khosla mentioned in an interview that besides the initial six months of Covid, there has not been such a wealth of investment opportunities in the economy over the last ten years when it's not in a recession. He also noted that debt markets are now transitioning after a period of complacency, and the firm is gearing up to expand its asset management team to leverage the changing investment landscape, especially with the increased risk of trade disputes. Strategic Value Partners has recruited four new team members in the US and Europe, focusing on real estate amidst emerging distress in office and multifamily properties.

Khosla highlighted the significant restructuring happening in the real estate sector, where distressed properties are being foreclosed and sold. The company plans to increase its property investments to 25% of its funds in the coming years, up from the usual 10% to 20%. Recent acquisitions by SVP include a London office building bought at a 60% discount and Ireland's largest mall in Dublin.

Looking beyond real estate, Khosla sees investment prospects in Germany due to its economy nearing recession and the prevailing higher interest rates compared to the prior period of easy money. German corporate debt distress has been increasing, with around $6.3 billion recorded on March 21. The chemicals industry, impacted by rising energy costs, is another area of interest for Khosla, as it holds approximately $6.8 billion of distressed debt worldwide, a decrease from $13 billion in January 2024 as optimism grows regarding a potential decrease in power costs if there is a resolution in Ukraine.