Goldman Sachs is asking investors in its $15bn private equity fund for approval to shift much of its remaining uninvested money into distressed debt, in a stark indication of dysfunctional conditions in the buy-out business. Already, TPG plans to dedicate $2.5bn of its $18.8bn buy-out fund to distressed debt, and has hired Alan Waxman from Goldman Sachs to run it. GSO, Blackstone’s debt specialist, has also been buying discounted debt and plans to step up such purchases.

This entry was posted by Gwen Robinson on Tuesday, March 17th, 2009 at 4:50 and is filed under Capital markets, Private equity. Tagged with blackstone, goldman sachs, gso, tpg. Edit this entry.