(Bloomberg) — Victor Khosla, the founder of Strategic Value Partners LLC, is looking to hire amid one of the most promising environments for opportunistic credit investors in the last 10 years.

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“For investors like SVP, if you take out the first six months of Covid, there’s never been such a rich vein of opportunities over the last decade in an economy that’s not in a recession,” Khosla said in an interview.

Debt markets are facing a “reckoning” after a period of complacency, he said in a separate Bloomberg Television interview on Monday. The money manager is planning to hire in asset management to capitalize on the changing investing environment as the risk of trade wars spreads. SVP has already hired four more people in the US and Europe to focus on real estate, adding to the existing group of 12, as distress in office and multifamily units starts to surface.

In real estate, “there’s a massive cleaning up process taking place. People tend to give up the ghost at some point and foreclose and sell,” he said, adding that the firm may invest 25% of its funds into property for the next few years, compared with 10% to 20% traditionally.

SVP recently agreed to purchase a City of London office building at a discount of about 60% from the initial asking price and also acquired the Blanchardstown Centre, Ireland’s biggest shopping mall, in Dublin.

Khosla also sees opportunities beyond just real estate in Germany because its economy is near recession and interest rates remain much higher than during the easy money era.

About $6.3 billion of German corporate debt was distressed on March 21, an increase of $543 million from the previous week, according to data compiled by Bloomberg News. While optimism about the country’s economic outlook is improving amid a plan to spend more on defense, bankruptcies have been on the rise as higher borrowing and energy costs weigh on companies.

Investors who did deals there when interest rates were 0% are now seeing that “their chickens are coming home to roost,” Khosla said.

Chemicals, hit in recent years by higher energy prices, is an industry of interest, he said. The sector has about $6.8 billion of distressed corporate debt across the world at present, according to data compiled by Bloomberg News, down from about about $13 billion in January 2024 amid optimism that power costs could fall if there’s a ceasefire in Ukraine.