GSO raises $4.5bn for its latest energy fund

The vehicle will invest in North American energy companies, both performing and distressed.

GSO Capital Partners has closed its latest energy fund with more than 60 percent more capital than its predecessor.

The New York-based firm held a final close on GSO Energy Select Opportunities Fund II Friday with $4.5 billion in capital commitments. It will focus on investing in North American performing companies as well as distressed and stressed companies in the energy sector, according to a source familiar with the situation.

The firm declined to comment.

The fund, which launched in April 2018, had a hard-cap of $5 billion and garnered capital commitments from a global investor base of family offices, institutional investors and endowments, among others.

The fund received re-up commitments of $75 million from the Teachers’ Retirement System of Louisiana and an undisclosed amount from the Marguerite Casey Foundation. Fund II also received commitments from Fubon Life Insurance ($50 million), the State of Wisconsin Investment Board ($50 million) and the Tennessee Consolidated Retirement System ($125 million), among others.

Fund I closed in the third quarter of 2015 on more than $2.86 billion and has since been fully deployed, according to the source.

Energy debt fundraising is continuing to grow in popularity. TPG Sixth Street Partners closed its TPG Glendale Energy Partners joint vehicle with Glendale Energy Ventures on $500 million earlier this month. New Energy Capital also closed on $500 million for its New Energy Capital Infrastructure Credit Fund II in January.

GSO is the credit arm of Blackstone and has more than $132 billion in assets under management. Blackstone has more than $512 billion in AUM.