Merrill Lynch will acquire a minority stake in GSO Capital Partners, an $8 billion hedge fund run by Bennett Goodman. It is Merrill’s second investment in a hedge fund in the past eight months.
The fund specializes in distressed investments, such as making loans to companies that have low credit ratings.
“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 Merrill’s trading division.
“The value of these hedge funds has been growing very fast, and it’s a good idea to make an equity investment in the early stages,” John Godden, head of IGS Group, told Bloomberg.
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