GSO / Blackstone to Acquire Collateral Management Contracts from Callidus
New York, January 20, 2010 – Today, GSO / Blackstone Debt Funds Management LLC (“DFM”), a business unit of GSO Capital Partners LP (“GSO”), which is an affiliate of The Blackstone Group L.P. (NYSE: BX, “Blackstone”), entered into a definitive purchase agreement with Callidus Capital Management LLC (“Callidus”) to acquire the Collateral Management Agreements for all nine CDO and CLO funds currently managed by Callidus. Callidus is a portfolio company of Allied Capital Corporation (NYSE: ALD, “Allied”). The nine funds managed by Callidus invest primarily in leveraged loans and high yield bonds. Total assets within the Callidus funds are approximately $3.2 billion. Completion of the acquisition will not be finalized until certain necessary consents are received. The purchase price was not disclosed.
Bennett Goodman, Senior Managing Partner of GSO said, “This transaction represents the execution of one of our key strategic initiatives to further scale our CLO franchise and capitalize on the strength of our investment process and infrastructure”.
GSO’s current assets under management total approximately $24 billion consisting primarily of leveraged finance investments.
Dan Smith, a Senior Managing Director and head of DFM said, “The Callidus CDOs fit nicely within our current fund complex. The funds have been well managed in a manner consistent with our style and philosophy such that the assets are very complimentary with our existing portfolios”.
GSO is currently one of the largest CLO managers globally with 24 CLOs in the U.S. and Europe under their management.
Matt Kelty, Principal of Allied said, “As both the majority owner of Callidus and a sizable investor in the Callidus funds, we were very selective about picking a potential partner for this platform. GSO’s sector expertise allowed for a very efficient diligence and negotiation process, and we believe they are extremely well positioned as a manager going forward.” Berkshire Capital served as exclusive advisor to Allied on this transaction.
About The Blackstone Group and GSO Capital Partners
Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our credit business, GSO Capital Partners LP, with over $24 billion of assets under management, is one of the largest credit-oriented alternative asset managers in the world and a major participant in leveraged finance. GSO specializes in collateralized loan obligation vehicles (CLOs) and credit-oriented funds, which include leveraged loans, special situations, mezzanine, distressed, secondary market and rescue financing credit strategies. Blackstone’s other alternative asset management businesses include the management of private equity funds, real estate funds, funds of hedge funds, and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com.