GSO Capital Partners LP reported its largest loss in at least two years from its distressed-debt investments, dragged down by the scarce supply of new targets and double-digit declines at some of its biggest funds that invest in troubled companies.
The credit arm of Blackstone Group LP reported a negative 5.9 percent net return from distressed-debt strategies for the fourth quarter, citing drops in public equity stakes, turmoil in the energy industry and turbulence in overall credit markets. That compares with a 2.6 percent gain in the same quarter a year earlier and 0.1 percent in 2018’s third quarter, according to Blackstone’s earnings presentation. The full year’s net return from troubled issuers swung to a 3.4 percent loss from a 4.9 percent gain in 2017.
