Bennett Goodman, who got his start almost 30 years ago helping Michael Milken use junk bonds to fund companies others thought too risky, says he is now the biggest investor in high-yield corporate loans in Europe as local banks back away.
A group of Energy Future Holdings Corp.’s unsecured bondholders including billionaire Marc Lasry’s Avenue Capital Group are poised to walk off owning the most profitable asset of the bankrupt power producer after engineering a deal to avoid a free-for-all restructuring.
GSO Capital Partners LP, the credit unit of Blackstone Group LP, has doubled rescue lending since August as Europe’s debt crisis pushes more companies to the brink of default, according to co-founder Bennett Goodman.
Blackstone Group LP raised more than $4 billion in 2009 to buy European property assets anticipating that cash-strapped banks would be forced to sell as the region’s debt crisis worsened. Almost all of it sat idle for two years.
Blackstone Group LP, the world’s biggest manager of alternatives to stocks and bonds, closed above $31 for the first time since 2007, the year it went public at that price before the housing crisis froze financial markets.
After making their founders billionaires, buyout specialists such as Carlyle Group and KKR & Co. are turning into asset managers that run hedge funds and strip malls as fresh capital and takeover targets become scarce.