Blackstone – GSO Capital Solutions Fund Closes on Over $3.25 Billion

Blackstone bought GSO Capital Partners LP in March 2008. One of the sovereign wealth funds participating is reported to be the Korea Investment Corporation.

According to the press release, “GSO Capital Partners LP, the credit business of The Blackstone Group, today announced the final closing of the Blackstone / GSO Capital Solutions Fund (“the Fund”) with total commitments of over $3.25 billion. The Fund’s strategy is focused on providing privately negotiated “capital solutions” to companies in need of liquidity or significant capital structure transformation due to pending covenant violations, debt maturities, cyclical downturns in their businesses or other funding requirements. The strategy leverages GSO Capital Partners’ distressed, credit and trading expertise, along with its unique deal origination capabilities. Thus far, the Fund has invested approximately $600 million in seven different companies. Bennett Goodman, Senior Managing Director of The Blackstone Group and Co-Founder of GSO Capital Partners said, “There are many great business franchises facing liquidity issues. We’re delighted to have raised a new fund of this magnitude to assist mid-market companies with their financing needs.”

Investors in the Fund include a diverse group of domestic and international pension funds, sovereign wealth funds, endowments, foundations and family offices.”

Source: The Blackstone Group Press Release