Blackstone’s GSO to Raise $5 Billion for Rescue-Lending

GSO Capital Partners LP, the credit arm of Blackstone Group LP (BX), has accumulated $3.3 billion for a fund to lend to troubled companies and may raise as much as $5 billion this year.

The rescue-lending fund is expected to reach $4 billion to $5 billion this year, Stephen Schwarzman, chief executive officer of Blackstone, said today on an earnings conference call with analysts.

GSO, which invests in speculative-grade corporate debt, raised $2.5 billion for the fund last year and an additional $810 million this month, Blackstone said today in a preliminary filing of its fourth-quarter earnings.

The credit unit, acquired by Blackstone in 2008, had total assets under management of $56.4 billion at the end of last year, a 53 percent increase from the $37 billion at the end of 2011, according to the filing.

High-yield, high-risk, or junk-grade, debt is rated less than Baa3 by Moody’s Investors Service and below BBB- at Standard & Poor’s.

To contact the reporter on this story: Christine Idzelis in New York at cidzelis@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.