Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration 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!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter