Dublin to benefit from loan group’s acquisition

GSO Capital Partners, the global credit platform of the Blackstone Group, has acquired European leveraged loan manager Harbourmaster Capital.

Harbourmaster manages and advises on about €8 billion assets and the combined European leveraged loan platform will have approximately €11.5bn in assets under management.

The acquisition will help GSO’s ambition of increasing its scale in Europe and creating more balance between the US and European operations.

Europe will contribute 40-45% of GSO’s leverage loan platform compared with less than 20% before the takeover.

The acquisition will make GSO one of the largest leveraged loan investors in Europe as well as the US.

GSO’s back and middle office functions will be conducted out of Harbourmaster’s offices in Dublin, which is seen as an attractive low cost centre.

Previously GSO handled these operations out of both the US and Europe, which was becoming increasingly hard to manage as the fund grew.

The 40-person team, based across Dublin and London, will be overseen by GSO’s Debra Anderson and Harbourmaster’s Alan Kerr and Mark Moffat.

In addition to leveraged loans, GSO also manages mezzanine, distressed and special situations investment funds that are active in the European credit markets.

The parties expect to close the transaction in early 2012 subject to regulatory approval. The terms of the transaction were not disclosed.