Blackstone Energy Bets Going Strong

Chidem Kurdas

Saratoga Resources, an oil and gas development company that went through bankruptcy, was not an obvious energy play for private equity and hedge fund behemoth Blackstone Group. Indeed, Blackstone’s growing stable of energy and commodity funds were not necessarily involved and certainly were not the primary actors.

Instead, it was another arm of Blackstone, credit business GSO Capital Partners, that acted as the lead investor in Saratoga’s debt and equity offering.  That made it possible for the energy company to refinance its debt. A couple of days ago it started trading on NYSE Amex.

This is another instance of Blackstone’s multi-pronged approach to commodities investing, using private equity, hedge fund, even distressed and credit – as with Saratoga– strategies.  

So far, the approach has panned out. Energy investments have been spectacular, said Blackstone president and chief operating officer Hamilton James, at a conference call. He says they are very optimistic about energy companies and see new opportunities.

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One Response to “Blackstone Energy Bets Going Strong”

  1. Blackstone Energy Prospects Remain Bright « HedgeFundSmarts Says:

    […] private equity investments in energy, Blackstone has a multi-asset approach. Thus in 2011, its credit arm GSO Capital Partners was the lead investor in Saratoga Resources, an oil and gas developm…that went through bankruptcy. Blackstone also seeds and allocates to commodity and energy hedge […]

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