Merrill buys big stake in GSO hedge fund

Merrill Lynch & Co. Inc. is purchasing a 20% minority stake in a hedge fund with $8 billion in assets under management.
MAY 21, 2007
By  Bloomberg
Merrill Lynch & Co. Inc. is purchasing a 20% minority stake in a hedge fund with $8 billion in assets under management. GSO Capital Partners LP is a registered investment-management firm. The terms of the deal were not disclosed, but a Wall Street Journal report said that Merrill will own a stake slightly less than 20%, paying an amount less than what the deal would have generated in the public market. As part of the transaction, Merrill will invest capital in several of GSO's strategies. GSO is a New York-based hedge fund which helps finance deals for private equity firms who buy struggling companies and then sell them off. "This investment in GSO is a continuation of our strategy to invest in best-in-class alternative investment managers worldwide," said Rohit D'Souza, head of Global Alternative Investments and global head of Equities at Merrill Lynch, according to a statement. Merrill Lynch joins other investment banks, including Morgan Stanley and Lehman Brothers Holdings Inc., which have made investments in hedge funds in recent months to increase income. Merrill Lynch manages $1.6 trillion in assets.

Latest News

The fight over the CFPB is just beginning
The fight over the CFPB is just beginning

Locked out of their offices and told to stay home, employees at the Consumer Financial Protection Bureau have asked the courts to intervene as Elon Musk and Republican leaders move to shut down the agency that was established to protect people from predatory lending and financial scams.

Business-focused wealth tech RISR lands $8B Wealthcare Capital Management partnership
Business-focused wealth tech RISR lands $8B Wealthcare Capital Management partnership

Fintech platform interVal has also introduced a new feature to help advisors support entrepreneurial business owner clients better.

LPL boosts revenue potential with amped-up alts platform
LPL boosts revenue potential with amped-up alts platform

Along with greater revenue, alternative investments also carry risks, one industry lawyer noted.

How SageSpring Wealth Partners' next-gen strategy has fueled its success
How SageSpring Wealth Partners' next-gen strategy has fueled its success

President Jeff Dobyns unpacks the strategic power of mentorship, what makes an "ideal team player," and how the firm's 89 percent success rate has paid off for veteran advisors.

Powell heads for hot-seat hearings with ongoing pressure from Trump policies
Powell heads for hot-seat hearings with ongoing pressure from Trump policies

The Fed chair is in for some "hyper-charged" meetings, with legislators likely to raise questions on tariff threats and apparent steps to comply with anti-DEI orders.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.