Juicy Yields on Energy Bonds Attracting PE Firms
Crude price volatility may not have completely closed the funding doors for US high-yield energy companies as private equity firms and new funds prepare to snap up juicy yields on offer after a recent slump in the sector's bonds. In a likely sign of things to come, GSO Capital Partners, the alternative asset manager owned by Blackstone, last week deployed cash by providing a large order for CrownRock's US$350m high-yield bond - the first such E&P offering in months. The move came after Blackstone President Tony James said last month it has US$10bn in equity and debt capital available for energy investment opportunities. GSO is now raising a new fund solely for energy, expected to be US$2bn, a source familiar with the matter said.
Blackstone Unlikely to Enter Commodities Trade
Blackstone Group LP is unlikely to make a foray into commodity trading in the short term as the world's largest alternative asset manager struggles to find a target to fit its asset-light business model, a senior executive said on Thursday. In his first earnings call with reporters since Blackstone lost out to Mercuria to buy JPMorgan Chase & Co's physical commodity division, Blackstone President Tony James said he is still interested in broadening the company's revenue through commodities. "It remains of interest, but I would not count on us doing anything in the short term," he said. James did not identify any potential targets. Insteadā¦
