Blackstone, Ares Eye European CLOs

The world’s largest private equity firmBlackstone Groupand Los Angeles–based investment firmAres Managementare heading an expansion in European collateralized loan obligations (CLOs),Bloombergreports. U.S. firms are acquiring dormant CLOs unable to raise funds in Europe as deal flow in the buyout market has shrunk 76 percent since July.

The firms are aiming to boost fee income from managing assets. Blackstone’s debt unitGSO Capital Partnerswith $15 billion worth European loans under management became the largest manager of CLOs in Europe after taking over Dublin-basedHarbourmaster Capital Managementin early October.

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