CalPERS commits $250m to GSO fund

Blackstone affiliate GSO Capital Partners is targeting $2bn for its Capital Solutions Fund, which was slated to hold a final close in May.

The California Public Employees’ Retirement System has committed $250 million to debt-focused Blackstone affiliate GSO Capital Partners, which is targeting $2 billion for its latest vehicle.

Blackstone/GSO Capital Solutions Fund was slated to close in May, but it’s unclear if the fund has held a final close.

As of April, it had collected $1.5 billion, according to pension documents from the San Diego County Employees Retirement Association.

The fund will target investments in rescue loans, distressed for control and opportunistic transactions like bankruptcy loans. In select cases, the fund will invest alongside core Blackstone funds, according to documents from the San Diego County pension. San Diego County committed $50 million to the fund in April.

Capital Solutions Fund has a 1.5 percent management fee, which will be offset 100 percent by transaction fees, according to San Diego pension documents. The fund started marketing in March 2009. Blackstone acquired GSO, an independent spin-out from Donaldson Lufkin & Jenrette, in 2008.

GSO was founded in 2005 by Bennett Goodman, Tripp Smith and Douglas Ostrover. Goodman, Smith and Ostrover all worked at DLJ and Credit Suisse before founding GSO.  Other senior executives at GSO include David Posnick, senior managing director, who came from Credit Suisse and was a partner at Leonard Green; and former DLJ executives Jason New and Dwight Scott.

Other investors in GSO’s fund include the California State Teachers’ Retirement System, the Illinois Teachers’ Retirement System, the Korea Investment Corporation and the Teachers’ Retirement System of Texas.