Blackstone's GSO Raises $6.5B for Mammoth Third Mezzanine Fund

Oct 31 2016 | 10:36pm ET

GSO Capital Partners, the credit division of alternative asset giant Blackstone, has raised $6.5 billion for its third mezzanine fund, making it one of the largest vehicles of its kind.

The new fund, named GSO Capital Opportunities Fund III, closed at its hard cap, GSO said in a statement. The new fund will invest across a broad range of sectors and geographies, with a particular focus on the U.S. and Europe. Investor commitments included global public, corporate and foreign pension funds, financial institutions, endowments, foundations and family offices.

GSO raised $4 billion in March 2012 for its second mezzanine debt fund. At the time, it was the largest such vehicle to be raised following the financial crisis of 2008.

The fund's size positions it as one of few mezzanine providers capable of committing to large sized transactions, while its flexible structure enables GSO to be creative in solving a company’s particular capital needs, the company added. 

GSO Capital Partners is one of the largest alternative managers in the world focused on the leveraged-finance, or non-investment grade related, marketplace. The company manages approximately $89 billion in assets and seeks to generate attractive risk-adjusted returns across a broad array of strategies including mezzanine debt, distressed investing, leveraged loans and other special-situation strategies.

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