GSO Strategies

GSO manages investment vehicles which focus on all or some of the following strategies: senior debt, mezzanine debt, private equity, public equity, distressed debt, relative value and credit derivatives

Multi-Strategy Credit

GSO’s multi-strategy credit business is focused on generating superior risk-adjusted returns by investing in a broad array of securities within the Leveraged Finance marketplace.  GSO may invest in both public and private non-investment grade and non-rated securities, including leveraged loans, high yield bonds, distressed securities, mezzanine securities, common and preferred equity securities and credit derivatives. GSO has a team of 33 research analyst and traders as well as 48 origination professionals focused on investment opportunities in the public and private market.

Mezzanine Debt

GSO’s Mezzanine Debt strategy is focused on making privately negotiated investments in the Leveraged Finance marketplace. The strategy focuses on providing flexible financing solutions, with an emphasis on providing junior capital to companies in connection with leveraged buyouts, acquisitions, recapitalizations and growth financings.  These investments include senior debt, subordinated debt, mezzanine securities, preferred stock and private equity.

GSO has established a reputation for providing creative, value-added solutions to address a company’s financing requirements and we believe that the ability to “solve a problem” for a company can lead to attractive investment opportunities.  GSO has wide investment latitude and can provide commitments of $50 million to $500 million.

Opportunistic Investment Strategies

Distressed Investing
Blackstone Distressed Securities Advisors seeks to provide superior risk-adjusted returns on investments in the debt or equity of financially distressed companies and in other deep-value, catalyst-driven opportunities, with an emphasis on smaller, less efficiently traded issues. BDSA focuses primarily on financially distressed companies and seeks to invest in securities that, due to security specific and other complex circumstances, it believes are incorrectly valued.

Leveraged Loans
GSO Liquidity Partners and Blackstone Credit Liquidity Partners are focused on capitalizing on the investment opportunities arising from the leveraged finance market dislocation. The strategy is to invest in debt financings that are sold at a discount due to current credit market conditions.  These securities may include leveraged loans, high yield bonds, second lien loans and bridge loans.

GSO Debt Funds

GSO Debt Funds Management is one of the largest CLO managers in the U.S.  With $14.1 billion in leveraged credit assets under management as of September 30, 2008, GSO Debt Funds Management is a significant investor in the leveraged credit market, with expertise managing and investing in broadly syndicated loans, middle market loans, high yield bonds, mezzanine debt and structured credit.

GSO Debt Funds Management is led by a seasoned investment committee of 6 investment professionals with an average of 16 years of experience investing in the leveraged credit markets and managing these assets within various formats, including Collateralized Loan Obligation vehicles, unleveraged separate accounts and permanent capital vehicles. The team is supported by a team of 6 portfolio managers, 22 investment analysts, 2 dedicated traders and 10 structuring and investor relations professionals working in the New York and London offices.