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  • Seller
  • Buyer
  • Type
  • Date Announced
  • Seller AUM
  • Collateral Management Agreements for CDO/CLO funds managed by Callidus Capital Management LLC (Allied Capital Corporation)
  • GSO / Blackstone Debt Funds Management LLC (The Blackstone Group L.P.)
  • Other
  • January 20, 2010
  • $3.2 Billion

Seller Details

Callidus Capital Management is a specialized asset management company focused on managing leveraged portfolios of corporate fixed income securities, including high-yield bonds, floating rate bank loans and other related assets. Callidus Capital is a portfolio company of Allied Capital, a business development company (BDC) in the U.S. that is regulated under the Investment Company Act of 1940. Allied Capital invests long-term debt and equity capital in middle market businesses nationwide. Founded in 1958 and operating as a public company since 1960, Allied Capital has been investing in the U.S. entrepreneurial economy for 50 years. Allied Capital has a diverse portfolio of investments in 110 companies across a variety of industries.

Buyer Details

Blackstone is one of the world’s leading investment firms. Blackstone's credit business, GSO Capital Partners LP, with over $24 billion of assets under management, is one of the largest credit-oriented alternative asset managers in the world and a major participant in leveraged finance. GSO specializes in collateralized loan obligation vehicles (CLOs) and credit-oriented funds, which include leveraged loans, special situations, mezzanine, distressed, secondary market and rescue financing credit strategies. Blackstone’s other alternative asset management businesses include the management of private equity funds, real estate funds, funds of hedge funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services.

Transaction Summary

GSO / Blackstone Debt Funds Management LLC, a business unit of GSO Capital Partners LP, which is an affiliate of The Blackstone Group L.P., entered into a definitive purchase agreement with Callidus Capital Management LLC to acquire the Collateral Management Agreements for all nine CDO and CLO funds currently managed by Callidus.  Callidus is a portfolio company of Allied Capital Corporation.  The nine funds managed by Callidus invest primarily in leveraged loans and high yield bonds. Total assets within the Callidus funds are approximately $3.2 billion.  Completion of the acquisition will not be finalized until certain necessary consents are received. The purchase price was not disclosed.
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