Tim Donahue returns to JPMorgan

Less than a year after taking over as the Asia Pacific head of Blackstone-owned GSO Capital Partners, Tim Donahue is rejoining JPMorgan.

Timothy Donahue, the former Asia Pacific head of The Blackstone Group’s credit subsidiary GSO Capital Partners, is rejoining JPMorgan, a source familiar with the matter has confirmed.

He had resigned from JPMorgan in May 2008 as head of its leveraged and acquisition finance business for the Asia Pacific region. A Reuters report said he is now expected to join the leveraged loan and high-yield capital markets team in New York.

Donahue was hired by Blackstone to start its credit finance business in Asia last year. In his previous role, he reported to GSO founder Bennett Goodman. GSO Capital Partners sought investments in mezzanine, equity-linked debt, distressed and leverage loans in the region.

GSO Capital, which Blackstone acquired in 2007 for $930 million to expand its credit capabilities, shut down its Asia desk in Hong Kong in January, Reuters reported.

GSO Capital Partners manages assets of about $20 billion as of 31 March 2009. It has offices in New York, London, Los Angeles and Houston.