Blackstone is in the final stages of borrowing around $400m through collateralised loan obligations (CLOs) to boost the lending power of its $52bn flagship private credit fund, according to a report by The Financial Times.
The report cites documents seen by the FT as revealing that the CLOs will be secured by the very loans held by the Blackstone Private Credit Fund (BCRED).
The firm also plans to sell debt from software maker Zendesk, cyber security business Mimecast and Unified Women’s Healthcare which provides business services for OB/GYN offices across the US, as part of the fund-raising, according to the report.
The cash will provide BCRED with additional capital to make multibillion-dollar corporate loans such as those written routinely by rivals Ares, Apollo Global Management and Sixth Street Investment Partners.
