GSO Capital Partners announced Thursday that GSO Capital Solutions Fund III, its third stressed/distressed fund, was closed at its hard cap of $7 billion.
The asset total was about 40% higher than the second fund in the series, which closed in 2013 at $5 billion, said a news release from Blackstone Group, GSO's parent company.
Demand from new and existing investors was well above the hard cap for the fund, the release added.
GSO has invested a total of $8.7 billion in the strategy through the first two funds in the capital solutions series. The investment approach provides financing to companies experiencing liquidity problems across various sectors with a focus on the U.S. and Europe.
Investors committing to the latest fund include the $224.4 billion California State Teachers' Retirement System, West Sacramento; $209.7 billion Florida State Board of Administration, Tallahassee; $209.1 billion New York State Common Retirement Fund, Albany; $151 billion Texas Teacher Retirement System, Austin; and $34.4 billion Indiana Public Retirement System, Indianapolis.
"We are delighted by and appreciative of the significant demand for our third fund from limited partners," said Bennett Goodman, senior managing director and co-founder of GSO Capital Partners, in the release. "This fund provides us with the capital necessary to continue our strategy of being a partner of choice to those companies seeking capital to solve their balance sheet and liquidity needs, enabling them to focus on their business and growth objectives,"
Blackstone's credit platform, which also includes Blackstone Insurance Solutions and Harvest Fund Advisors' energy master limited partnership business, manages $138 billion.