Welcome to our new website! Let us know what you think..

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Blackstone readies CLO fund with 8% yield target

Blackstone readies CLO fund with 8% yield target

Blackstone is seeking to raise more than £150 million for a new closed-ended fund focused on collateralised loan obligations (CLOs).

The Blackstone GSO Loan Financing fund is expected to launch on 23 July, and will invest predominantly in European senior secured loans and subordinated tranches of debt issued through CLOs.

The fund will be run by Blackstone’s credit subsidiary, GSO Capital Partners, which is the world’s largest manager of CLOs with £12.5 billion of assets under management.

The strategy is targeting an annual dividend yield of 8%, with a ‘mid-teen total return over the medium term’.

GSO will initially concentrate on European senior secured loans for the portfolio, but ‘in due course’ may expand this to include US senior secured loans.

The fund’s total annual expenses are expected to be 0.45%.

Last month another closed-ended CLO fund, Fair Oaks Income, raised £65 million after seeking more than £100 million. It is targeting a minimum dividend yield of Libor plus 6.75%, with a net total return of 12-14% a year.

Fair Oaks is also headed by two GSO alumni, Miguel Ramos Fuentenebro and Roger Coyle.

Leave a comment
Citywire TV
Play BlackRock UK Special Sits: when will we sell our star holdings?

BlackRock UK Special Sits: when will we sell our star holdings?

What would prompt Roland Arnold to sell the likes of Ashtead and Howden?

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: how Matthew Butcher is carving a new role at Dart Capital

Profile: how Matthew Butcher is carving a new role at Dart Capital

The wealth management industry is undergoing a profound period of change: whether it wants to admit it or not.

Wealth Manager on Twitter