US private equity firm Blackstone Group has raised more than $3bn (€2.4bn) for a debt fund that will help finance distressed businesses, as buyout houses push deeper into the lending territory of weakened banks.

Blackstone's credit unit, GSO Capital Partners, raised $3.25bn to finance companies "in need of liquidity or significant capital structure transformation", according to a statement. The firm had expected to raise about $2bn for the fund, according to a spokeswoman.