Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Blackstone’s GSO Raises $5 Billion Fund for Distressed Companies

Sept. 3 (Bloomberg) -- GSO Capital Partners LP, the credit arm of Blackstone Group LP, raised a $5 billion fund to provide financing to distressed companies.

The GSO Capital Solutions Fund II LP will help companies in need of cash and facing such liquidity issues as pending debt maturities and covenant violations, according to a statement today distributed by Business Wire.

“A fund of this size uniquely positions GSO as one of few firms that can provide companies in the U.S. and Europe with large commitments to solve their balance sheet and liquidity challenges,” Tripp Smith, a co-founder of GSO, said in the statement.

Investors in the new fund include U.S. state and corporate pension funds, sovereign-wealth funds, insurance companies, endowments, foundations and family offices.

New York-based GSO has invested more than $4 billion of so-called rescue financing, with a focus on North America and Western Europe, according to the statement. The new fund is more than 50 percent larger than its first such pool, which was raised in 2010.

Bennett Goodman, Smith and Doug Ostrover co-founded GSO in 2005 to invest in junk-grade corporate debt. The unit, acquired by Blackstone in 2008, had about $62 billion of assets under management at the end of June.

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

To contact the editor responsible for this story: Faris Khan at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.