Blackstone’s GSO raises $6.5 bln for third mezzanine fund

GSO Capital Partners, Blackstone’s credit investment platform, has closed its third mezzanine fund at a hard cap of $6.5 billion. GSO Capital Opportunities Fund III will focus on the U.S. and Europe. The fund’s LP base includes public, corporate and foreign pension funds, financial institutions, endowments, foundations and family offices.


NEW YORK–(BUSINESS WIRE)–GSO Capital Partners, the credit division of Blackstone (NYSE: BX), today announced the final closing of its third mezzanine fund, GSO Capital Opportunities Fund III (“the Fund”), at its hard cap of $6.5 billion, making it one of the world’s largest mezzanine funds. GSO will seek to invest the Fund across a broad range of sectors and geographies, with a particular focus on the U.S. and Europe. GSO sourced commitments from a global investor base, including public, corporate and foreign pension funds, financial institutions, endowments, foundations and family offices. A significant number of investors in prior funds made new commitments while GSO attracted many new investors as well.

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. With its proven expertise in deal origination, credit selection and structuring, GSO is consistently selected as a partner of choice by companies and private equity firms seeking capital for acquisitions and other important strategic initiatives.

Tripp Smith, Senior Managing Director and Co-founder of GSO, said; “We appreciate this extraordinary vote of confidence from our investors. We look forward to seeking opportunities to invest this capital in world-class companies while continuing our consistent track record for our Limited Partners and their constituents.”

About GSO Capital Partners
GSO Capital Partners LP is the global credit investment platform of Blackstone. With approximately $89 billion of assets under management, GSO is one of the largest alternative managers in the world focused on the leveraged-finance, or non-investment grade related, marketplace. GSO seeks to generate attractive risk-adjusted returns in its business by investing in a broad array of strategies including mezzanine debt, distressed investing, leveraged loans and other special-situation strategies.

About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $360 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at Follow Blackstone on Twitter @Blackstone.