One of three co-founders to leave GSO

 Doug Ostrover, one of the three co-founders of GSO Capital Partners, is stepping down to start a family office.  

GSO Capital Partners told clients in a letter today (22 May) that one of its co-founders is leaving the firm to start his own family office. Doug Ostrover, who co-founded the credit-focused firm in 2005, along with partners Bennett Goodman and Tripp Smith, will remain an external advisor to the firm. His last day at GSO will be on 1 July.

GSO, which runs a variety of debt strategies, including rescue lending funds, mezzanine funds, business development companies, hedge funds and CLOs, has $75 billion in assets under management. It has enjoyed strong performance and record growth across its various strategies. It managed $10 billion when it was acquired by The Blackstone Group in 2008.

Ostrover’s responsibilities at GSO will be assumed by other senior members of the team. He also expects to start his own investment firm once his non-compete clause with Blackstone expires, according to The Wall Street Journal.

“On behalf of all of us at the firm, I want to thank Doug for his many contributions to Blackstone and GSO. He leaves behind a deep bench of finance professionals at GSO, whom he helped mentor and train over the years,” Stephen Schwarzman, chief executive of Blackstone, said in a statement. “I wish him well in the next stage of his career and I am glad that he is keeping a continuing affiliation with the firm,” he continued.

 Before founding GSO Capital in 2005, Ostrover was a managing director of Credit Suisse First Boston and chairman of the leveraged finance group there. He joined CSFB in November 2000 when the firm acquired DLJ, where he was a managing director in charge of high-yield and distressed sales, trading and research. Ostrover had been a member of DLJ's high-yield team since 1992.

Goodman and Smith will continue to co-lead GSO. As a reward for good performance, Goodman was promoted to Blackstone’s board of directors in February, as PDI previously reported. Smith, meanwhile, has been splitting his time between New York and London and working on building out the European business since 2012. The duo plan to invest in Ostrover’s family office, according to Bloomberg.