GSO Capital Partners
Subsidiary | |
Industry | Financial Services, Asset Management |
Founded | 2005 |
Founder | Bennett Goodman, Tripp Smith, Doug Ostrover |
Headquarters | New York, New York, U.S. |
Products |
Mezzanine capital Leveraged finance Hedge funds Distressed investments |
AUM | US$84 billion (2016) |
Parent | The Blackstone Group |
Website | Company Website |
GSO Capital Partners is one of the largest credit-oriented alternative asset managers in the world and a major participant in the leveraged finance marketplace. The firm invests across a variety of credit oriented strategies and products including collateralized loan obligation vehicles investing in secured loans, hedge funds focused on special situations investments, mezzanine debt funds and private equity funds focused on rescue financing.
The firm, which was founded in 2005, is based in New York City with offices in London, Los Angeles, and Houston, Texas. The firm is named for its three founding partners Bennett Goodman, Tripp Smith and Doug Ostrover who had previously worked together at Donaldson, Lufkin & Jenrette and later Credit Suisse First Boston.
GSO manages approximately $55 billion of assets and operates as the credit-focused subsidiary of The Blackstone Group (NYSE: BX).
History
GSO was founded in 2005 by Bennett Goodman, Tripp Smith and Doug Ostrover. The GSO team had previously managed the leveraged finance businesses at Donaldson, Lufkin & Jenrette and later Credit Suisse First Boston, after the acquisition of DLJ.[1]
In May 2007, GSO sold a minority stake in its business to Merrill Lynch.[1]
The following year, in March 2008, The Blackstone Group acquired GSO for approximately $1 billion.[2] Blackstone paid GSO $620 million in cash and stock and the GSO team also received an earnout worth up to $310 million through payable over the subsequent five years, based on certain earnings targets. Blackstone had existing relationships with the GSO team as an original investor in GSO's funds. The combination of Blackstone and GSO created one of the largest credit platforms in the alternative asset management business, with over $21 billion of total assets under management.[3] Following the completion of the acquisition, Blackstone merged GSO's operations with its existing debt investment operations.[4][5]
In July 2010, GSO announced the final closing of the Blackstone / GSO Capital Solutions Fund (the Fund) with total commitments of over $3.25 billion.[6]
In March 2011, GSO acquired European collateralized loan obligation manager AIB Capital Markets which included four CLO vehicles worth more than €1.5 billion. GSO had previously acquired $3.1 billion of CLOs from Callidus Capital Management in 2010.[7]
In November 2011, it was reported that GSO had raised over $2 billion for its newest mezzanine debt investment fund, making it one of the largest players in that market.[8]
In March 2012, GSO raised $4 billion for its second mezzanine investment fund focused on middle-market companies.[9]
Investments
GSO invests across a variety of credit oriented strategies.
- Leveraged finance — GSO is a leading provider of senior secured loans to middle market companies. The firm invests through various pools of capital including: Collateralized loan obligation (CLO) vehicles as well as other investment funds and accounts.
- Special Situations hedge fund — GSO's hedge funds invest in long/short credit, event driven opportunities and distressed securities. These funds invest across a broad range of securities including secured loans, high yield debt, distressed securities, second lien loans, mezzanine debt as well as equity securities and credit derivatives.
- Mezzanine debt — GSO's Capital Opportunities Funds provide mezzanine capital as part of leveraged buyouts transactions, mergers and acquisitions and leveraged recapitalizations as well as for growth capital.
- Rescue Financing — GSO's Capital Solutions Funds provide private equity capital to companies needing liquidity or facing issues with their existing capital structures.[10]
References
- 1 2 Merrill Lynch Takes Hedge Fund Stake. New York Times, May 21, 2007
- ↑ Blackstone buys GSO for $1bn. Financial Times, January 11, 2008
- ↑ Blackstone to Buy GSO Capital. New York Times, January 10, 2008
- ↑ Blackstone to Buy Hedge Fund to Strengthen Credit Operations. New York Times, January 11, 2008
- ↑ Blackstone To Rationalize Single Manager Hedge Funds Businesses In Efficiency Move. Press Release, December 23, 2008
- ↑ The Morning Leverage: May The Force Be With GSO. WSJ Private Equity Beat, July 14, 2010
- ↑ Blackstone’s GSO Agrees to Take Over AIB CLO Business. Bloomberg BusinessWeek, March 30, 2011
- ↑ GSO raising billions in hot mezz market. Private Equity International, November 10, 2011
- ↑ "Blackstone Group's GSO Capital Raises $4 Billion Credit Fund". Bloomberg. Retrieved 31 May 2013.
- ↑ Blackstone’s GSO Doubles Rescue Lending for Distressed Borrowers. Bloomberg, Nov 17, 2011
External links
- GSO Capital Partners (company website)