Masters in Business Building a Global Private Credit Firm and 'Trading' Planes with Victor Khosla
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Sep 19, 2024 
Victor Khosla, Founder and CIO of Strategic Value Partners, shares his extensive expertise in distressed debt and investment strategies. He discusses the evolution of high-yield markets and explains how technology can facilitate sustainability. Victor delves into the challenges of commercial real estate and the dynamics of distressed investing, emphasizing transformation over cost-cutting. He also highlights the importance of mentorship in finance and the intersection with his passion for tennis, offering insights for aspiring professionals.
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Origins of Distressed Debt
- Bloomingdale's and SCI TV bankruptcies triggered the need for banks to sell off bad debt.
- This created an opportunity for a new market in distressed debt trading.
Early Distressed Debt Market
- The distressed debt market was undeveloped, requiring analysis and pricing of unknown assets.
- Bankruptcy processes were also not well-established, adding complexity to valuation and restructuring.
Impact of Rising Rates
- Rising interest rates significantly impact leveraged businesses, especially those with slow growth.
- Maturing debt creates additional pressure, leading to increased opportunities for distressed investors.