Blackstone to buy Harbourmaster Capital

GSO Capital Partners LP the global credit platform of The Blackstone Group L.P announced the acquisition of Harbourmaster Capital

a leading European leveraged loan manager which manages and advises on approximately €8 billion ($11 billion) of assets. The Harbourmaster Capital Dublin-based team will continue to support the Harbourmaster funds, and will form a combined platform with GSO's existing European leveraged loan business to develop new European
focused funds for their global investor base.

The combined European leveraged loan platform will have approximately €11.5 billion ($15.5 billion) in assets under
management supported by a combined team of 40 professionals in both Dublin and London. The acquisition makes GSO one of the largest leveraged loan investors in Europe as well as the United States, thereby enhancing its global scale. In addition to leveraged loans, GSO also manages mezzanine, distressed and special situations investment funds that are active in the European credit markets.

Bennett Goodman, Senior Managing Director and Co-Founder of GSO commented on the transaction: "Harbourmaster Capital is widely recognized as a market leader in Europe, an extremely well managed firm whose investment style and philosophy is completely consistent with ours. By merging our European platforms, we are creating one of the largest alternative managers in Europe, strategically positioning us to capitalize on the growing number of investment opportunities in the European corporate credit markets."

GSO, together with its affiliates has approximately $34 billion of assets currently under management (approximately $45 billion pro forma for the acquisition), is one of the largest credit-oriented alternative managers in the world and a major participant in the leveraged finance marketplace. GSO seeks to generate superior risk-adjusted returns in its credit business by investing in a broad array of strategies including mezzanine, distressed investing, leveraged loans and other special situation strategies. The parties expect to close the transaction in early 2012 following receipt of regulatory and certain third party approvals. The terms of the transaction were not disclosed.

Article Published: 11/10/2011