Daily News: March 28, 2012

GSO Capital Partners’ Second Mezzanine Fund Closes on $4 Billion


GSO Capital Partners, the credit division of Blackstone, announced the final closing of its second mezzanine fund, GSO Capital Opportunities Fund II with total commitments of $4 billion, making it among the world’s largest mezzanine funds and the largest mezzanine fund to be raised following the financial crisis of 2008. GSO will invest the fund across a broad range of sectors and geographies, with a particular focus on the U.S. and Europe.

The fund’s size and scale allows it to focus on the underserved upper middle market, 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 mezzanine capital for acquisitions and other important strategic initiatives.

Thus far, the fund has deployed or committed $780 million in four companies, including providing financing to Sony Corp. for its acquisition of EMI Group’s publishing unit and a preferred equity investment in a subsidiary of Chesapeake Energy created to help fund development of the Utica oil and natural gas field.

Bennett Goodman, 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.”

Blackstone is an investment and advisory firm.