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NEW YORK CITY-GSC Partners has formed GSC Capital Corp., a REIT that will invest in real estate-related securities, whole loan mortgages, bank loans, corporate loans and other asset-backed securities. The REIT's offering comprised of approximately $100 million of equity and $100 million of convertible debt.
The privately held institutional investment manager co-invested $17 million pro rata in the equity and convertible debt. Deutsche Bank Securities served as sole underwriter. GSC Capital will work with GSC Partners, its outside manager, which also manages other funds specializing in credit transactions in control distressed debt investing, corporate credit, European mezzanine lending and structured finance.
Frederick H. Horton, a managing director of GSC Partners who serves as chief executive of GSC Capital, says the firm created a platform to "create value for our investors through rigorous quantitative and qualitative analysis and innovative application of securitization technologies. Alfred C. Eckert III, chairman and chief executive officer of GSC Partners, adds that the formation demonstrates a commitment to "creating value through the continued development of new investment opportunities."
GSC Capital will also use structured financing techniques which are intended to mitigate interest rate risks and achieve attractive term financing. GSC Partners is a registered investment advisor with more than $7 billion of assets under management. A year ago, GSC Partners formed the investment placement group to facilitate capital raising and manage relationships with its global investor base. Earlier this year, Greenwich Street Capital Partners II LP, a GSC Partners investment fund completed the sale of its entire holdings in RR Donnelley & Sons, which yielded total proceeds of $356 million.
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