Black Diamond Capital Management's Purchase of GSC Group Assets Approved by U.S. Bankruptcy Court

Will Assume Control of Approximately $7 Billion of Assets Under Management in GSC's Control Distressed/Private Equity, Mezzanine and CLO Funds

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Black Diamond Capital Management, L.L.C.

Jul 12, 2011, 02:55 ET

GREENWICH, Conn., July 12, 2011 /PRNewswire/ -- Black Diamond Capital Management, L.L.C. ("Black Diamond" or "Company") today announced that it has secured court approval to complete the acquisition of substantially all of the investment management business and related assets of GSC Group, Inc. and its affiliates ("GSC"). Upon a closing of the acquisition, Black Diamond and affiliated entities will assume active control of GSC's control distressed/private equity, mezzanine, ABS and CLO funds, totaling approximately $7 billion of assets under management. The sale follows a competitive auction process held in accordance with Section 363 of the Bankruptcy Code in October 2010, for which Black Diamond secured final approval at a hearing in the U.S. Bankruptcy Court for the Southern District of New York held on July 7, 2011.

With the closing of the deal, which is expected within 30 days, Black Diamond will manage approximately $13.0 billion of assets across its control distressed/private equity, mezzanine hedge fund and CLO vehicles. Following the closing, Black Diamond intends to hire approximately 15 GSC employees to join the Black Diamond team. The acquisition also expands Black Diamond's office network beyond its existing U.S. base into the United Kingdom.

Commenting on the completion of the deal, Stephen Deckoff, Managing Principal of Black Diamond said, "I am extremely pleased that following a long and competitive process, Black Diamond has secured approval to complete the acquisition of GSC's assets, and we look forward to working on behalf of a prestigious group of GSC investors representing significant public and corporate pension plans, insurance companies and other financial institutions, endowments, foundations, and family offices globally. Importantly, we believe the transaction will benefit Black Diamond and its investors by enhancing investment and back office resources, adding deal sourcing opportunities and expanding capabilities in Europe, amongst other benefits." Continuing, Mr. Deckoff said, "I am also very pleased that Black Diamond will be joined by a number of GSC's employees, both here in the United States and in London. Their investment experience, industry know-how, and geographic reach will further strengthen the Black Diamond team and I look forward to working with them."

About Black Diamond Capital Management:

Black Diamond Capital Management is a leading alternative asset management firm with over $6 billion in assets under management. With complementary control distressed/private equity, hedge fund and CLO vehicles, Black Diamond invests in performing, stressed and distressed securities. Founded in 1995, Black Diamond has offices in Greenwich, CT and Lake Forest, IL.

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