Black Diamond Capital Management Wins Auction for GSC Group Assets

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Black Diamond Capital Management, L.L.C.

Nov 01, 2010, 10:35 ET

GREENWICH, Conn., Nov. 1, 2010 /PRNewswire/ -- Black Diamond Capital Management, L.L.C. ("Black Diamond" or "Company") today announced that, following a three day competitive auction process held in accordance with Section 363 of the Bankruptcy Code, Black Diamond and its affiliate Black Diamond Commercial Finance, LLC, as agent for the GSC lender group ("BDCF") have been declared the winning bidders and have executed a definitive agreement for the acquisition of substantially all of the investment management business and related assets of GSC Group, Inc. and certain of its affiliates ("GSC"). Subject to other required approvals, Black Diamond expects that the sale will be approved by the U.S. Bankruptcy Court for the Southern District of New York at a hearing scheduled for December 6, 2010.

Upon completion of the sale, Black Diamond intends to assume active control of GSC's CLO, control distressed/private equity and mezzanine funds, which combined have approximately $8 billion of assets under management. The Company also intends to retain Alfred Eckert, currently GSC's Chairman and Chief Executive Officer, as a strategic advisor and Peter Frank, currently GSC's President, as a Senior Managing Director. Black Diamond expects that additional GSC employees will also join the Company following the sale.

Commenting on the auction results, Stephen Deckoff, Managing Principal of Black Diamond said, "I am extremely pleased that following a competitive auction, Black Diamond and BDCF have been declared the winning bidders for GSC's assets. GSC's CLO, control distressed/private equity and mezzanine funds are natural complements to Black Diamond's existing lines of business and, combined, the two companies will provide an even stronger foundation from which to maximize results for GSC's and Black Diamond's investors." Continuing, Mr. Deckoff said, "I am looking forward to developing deep relationships with GSC's clients and I am pleased that Black Diamond will be able to draw on the talents of Alfred Eckert and Peter Frank. Their depth of investment experience will enable us to continue to capitalize on fundamental market opportunities, as we strive to provide superior returns to our investors."

About Black Diamond Capital Management: Founded in 1995, Black Diamond Capital Management, L.L.C. (Black Diamond) is a registered investment advisor and a leading alternative asset management firm, with approximately $6 billion in assets under management across complementary control distressed/private equity, hedge fund and CLO vehicles. Black Diamond has offices in Greenwich, CT and Lake Forest, IL.

About Black Diamond Commercial Finance: Founded in 2003, Black Diamond Commercial Finance, L.L.C. (BDCF) is a middle market focused financial services company specializing in the sourcing, underwriting, syndication and administration of senior secured loans. BDCF is located in Lake Forest, IL.

About GSC Group: Founded in 1999 GSC Group, Inc. (GSC) is a registered investment advisor specializing in credit-driven investment strategies with offices in New Jersey and London.

SOURCE Black Diamond Capital Management, L.L.C.