Blackstone Closes $4B Mezzanine Fund

Blackstone Group said on Wednesday it raised a $4 billion second mezzanine fund — one of the world’s largest mezzanine funds and the biggest one to be raised after the 2008 financial crisis, Reuters reported Wednesday. Blackstone’s GSO Capital Opportunities Fund II will focus on opportunities in the U.S. and Europe. It has already allocated a total of $780 million to four investments, including providing financing for Sony Corp’s acquisition of music label EMI Group’s publishing unit.

(Reuters) – Blackstone Group LP said on Wednesday it raised a $4 billion second mezzanine fund — one of the world’s largest mezzanine funds and the biggest one to be raised after the 2008 financial crisis.

 

Credit is a major business for Blackstone, accounting for 22 percent of its $166 billion of assets under management as of the end of 2011. It allows the private equity firm to invest in companies through the debt rather than the equity route.

 

Blackstone’s GSO Capital Opportunities Fund II will focus on opportunities in the U.S. and Europe. It has already allocated a total of $780 million to four investments, including providing financing for Sony Corp’s acquisition of music label EMI Group’s publishing unit.

 

GSO Capital Opportunities Fund I, which raised $2 billion and started investing in 2007, was valued at 1.3 times its cost as of the end of September, according to Oregon Public Employees Retirement Fund, a Blackstone investor.