SEC Declares Blackstone/GSO Interval Fund Effective
Blackstone/GSO Floating Rate Enhanced Income Fund, a $3 billion interval fund sponsored by private equity giant The Blackstone Group (NYSE: BX), has been declared effective by the Securities and Exchange Commission.
Blackstone/GSO Floating Rate Enhanced Income Fund, a $3 billion interval fund sponsored by private equity giant The Blackstone Group (NYSE: BX), has been declared effective by the Securities and Exchange Commission.
Blackstone/GSO Floating Rate Enhanced Income Fund plans to invest at least 80 percent of its assets in floating rate loans, notes, or bonds, and may invest up to 20 percent in structured products, derivatives, warrants and equity securities, fixed rate instruments, and equity investments in other investment companies. The company noted that substantially all of its assets may be invested in instruments that are below investment grade quality.
GSO/Blackstone Debt Funds Management LLC serves as the fund’s investment adviser and will also provide administrative and compliance oversight services. The adviser is a subsidiary of registered investment adviser GSO Capital Partners LP, the credit platform of The Blackstone Group.
The fund is offering three share classes: Class T shares for brokerage accounts, Class D shares for advisory accounts, and Class I shares for institutional accounts. The minimum initial investment for Class T and Class D shares is $10,000 per account, while Class I shares have a $1 million minimum.
Class T shares are initially priced at $25.64 each and have a maximum front-end sales load of 2.5 percent, which selling agents may reduce or waive at their discretion. An annual 0.25 percent service fee and 0.25 percent distribution fee will be paid to Blackstone Advisory Partners L.P., the fund’s principal underwriter and distributor.
Class D shares are priced at $25.00 each and have an annual 0.25 percent service fee, and no sales load or distribution fee.
Class I shares are priced at $25.00 each and have no sales load, distribution fee, or service fee.
All share classes are also subject to an annual 1 percent management fee paid to the fund’s advisor.
The fund seeks to make monthly repurchase offers of 5 percent of the fund’s outstanding common shares at net asset value, however shares held for less than one year may be subject to a 2 percent repurchase fee.
Blackstone’s business is organized into four segments: private equity, real estate, hedge fund solutions and credit. The company recently launched its first non-traded REIT, Blackstone Real Estate Income Trust. As of September 30, 2017, Blackstone had total assets under management of approximately $385 billion, and GSO’s asset management operation had approximately $99 billion in assets under management.
