Company type | Private |
---|---|
Industry | Private equity |
Founded | 1995 |
Founder | John Grayken |
Headquarters | Dallas, Texas, United States |
Key people |
|
Products | Private equity, real estate, credit |
AUM | $95 billion (2024) |
Website | www |
Lone Star Funds, legal name of main entity Lone Star Global Acquisitions, Ltd. is a global private equity firm that invests in corporate equity, real estate, credit, and other financial assets. [1] The founder of Lone Star established its first fund in 1995 (under a different name) and Lone Star has to date organized 25 private equity funds with total capital commitments since inception of over $95 billion (as of 2024). [2] [3] [4] Lone Star's investors include corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds and high-net-worth individuals. [5] Lone Star Funds has affiliate offices in North America, Europe and Japan. [6]
Hudson Advisors LP, an approximately 900-person global asset management company owned and controlled by the founder of Lone Star, performs due diligence and analysis, asset management and related services for Lone Star Funds. [7] In this capacity, Hudson Advisors LP has managed in excess of $260 billion of assets for Lone Star Funds since inception. [8]
Lone Star was founded by John Grayken. [9] From 1993 to 1995, Mr. Grayken was chairman and CEO of Brazos Partners L.P., a joint venture between the Robert M. Bass Group and the Federal Deposit Insurance Corporation, [10] that resolved approximately 1,300 “bad bank” assets resulting from the U.S. savings and loan crisis in the early ‘90s. [11] During this period, Brazos Advisors LLC was formed to provide asset-management and related services to Brazos Partners.
Following Brazos Partners, Grayken organized institutional capital to continue investing in distressed assets, closing Brazos Fund, L.P. in 1995 with approximately $250 million of capital commitments. [12]
Lone Star Opportunity Fund, L.P. followed in 1996, with approximately $396 million of capital commitments. [13] At that time Brazos Advisors, LLC was renamed Hudson Advisors LLC. [14]
After an expansion into Canada in 1995 and 1996, Grayken pursued the launch of a global platform for Lone Star in 1997. [15] Since then, Lone Star has invested extensively in North America, Europe and East Asia. [16] Lone Star invested primarily in East Asia, including Japan, Korea, Indonesia and Taiwan, following the Asian financial crisis in the late 1990s. [17] In the mid-2000s, following the establishment of the Eurozone, Lone Star increased its investment focus in Europe. [11] And with the onset of the global financial crisis, from 2007 Lone Star was again actively investing in the U.S. [9]
Through its credit affiliate, LStar Capital (officially LSC Film Corporation), the company entered the motion picture financing sector when they signed a $200 million deal with Sony Pictures in early 2014. The deal gives them a financial stake in nearly all of Sony's upcoming films. [18] However, due to the poor box-office performance of Sony's movies, the two firms severed ties on July 17, 2017, two years before the deal was set to end. [19]
In July 2015, Lone Star acquired the UK property investment and development company Quintain for £700 million. [20]
In March 2017, the Portuguese Central Bank announced that Lone Star Funds will acquire 75% of third largest Portuguese bank, Novo Banco, in return for a capital injection of €1bn. [21] The other 25% will be retained by the Portuguese bank's resolution fund. In October 2017 the deal was closed and Lone Star Funds started controlling 75% of Novo Banco. [22]
Lone Star invests in a variety of asset classes, primarily asset-heavy and/or cash flowing opportunities in developed markets. [23]
The following list shows the company's various funds. [24]
Fund | Vintage Year | Committed Capital |
---|---|---|
Lone Star Real Estate Fund VII | 2024 | $2.7B [25] |
Lone Star Fund XII | 2023 | $5.3B [26] |
Lone Star Residential Mortgage Fund III | 2022 | $657M [26] |
Lone Star Value-Add Fund II | 2022 | $619M [26] |
Lone Star Value-Add Fund I | 2020 | $759M [27] |
Lone Star Real Estate Fund VI | 2019 | $4.7B [28] |
Lone Star Residential Mortgage Fund II | 2019 | $761M [28] |
Lone Star Fund XI | 2019 | $8.1B [29] |
Lone Star Fund X | 2017 | $5.5B [29] |
Lone Star Real Estate Fund V | 2016 | $5.8B |
Lone Star Real Estate Fund IV | 2015 | $5.8B [30] |
Lone Star Residential Mortgage Fund I | 2015 | $1.3B [31] |
Lone Star Fund IX | 2014 | $7.2B [32] |
Lone Star Real Estate Fund III | 2013 | $7.0B |
Lone Star Fund VIII | 2013 | $5.1B |
Lone Star Fund VII | 2010 | $4.6B |
Lone Star Real Estate Fund II | 2010 | $5.5B |
Lone Star Fund VI | 2008 | $7.5B |
Lone Star Real Estate Fund | 2008 | $2.4B |
Lone Star Fund V | 2005 | $5.1B |
Lone Star Fund IV | 2002 | $4.2B |
Lone Star Fund III | 2000 | $2.3B |
Lone Star Fund II | 1999 | $1.2B |
Lone Star Opportunity Fund | 1997 | $396M |
Brazos Fund | 1995 | $250M |
The Carlyle Group Inc. is an American multinational company with operations in private equity, alternative asset management and financial services. As of 2023, the company had $426 billion of assets under management.
Private equity (PE) is stock in a private company that does not offer stock to the general public. In the field of finance, private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms, rather than the companies in which they invest.
TPG Inc., previously known as Texas Pacific Group and TPG Capital, is an American private equity firm based in Fort Worth, Texas. TPG manages investment funds in growth capital, venture capital, public equity, and debt investments. The firm invests in a range of industries including consumer/retail, media and telecommunications, industrials, technology, travel, leisure, and health care. TPG became a public company in January 2022, trading on the NASDAQ under the ticker symbol “TPG”.
Oaktree Capital Management, Inc. is an American global asset management firm specializing in alternative investment strategies. As of September 30, 2024, the company managed $205 billion for its clientele.
Goldman Sachs Asset Management Private Equity is the private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally. The group, which is based in New York City, was founded in 1986.
In finance, the private-equity secondary market refers to the buying and selling of pre-existing investor commitments to private-equity and other alternative investment funds. Given the absence of established trading markets for these interests, the transfer of interests in private-equity funds as well as hedge funds can be more complex and labor-intensive.
Apollo Global Management, Inc. is an American asset management firm that primarily invests in alternative assets. As of 2022, the company had $548 billion of assets under management, including $392 billion invested in credit, including mezzanine capital, hedge funds, non-performing loans, and collateralized loan obligations, $99 billion invested in private equity, and $46.2 billion invested in real assets, which includes real estate and infrastructure. The company invests money on behalf of pension funds, financial endowments, and sovereign wealth funds, as well as other institutional and individual investors.
Lexington Partners is one of the largest manager of secondary acquisition and co-Investment funds in the world, founded in 1994. Lexington manages approximately $55 billion of which an unprecedented $14 billion was committed to the firm's ninth fund, the largest dedicated secondaries pool of capital ever raised at the time.
TPG Angelo Gordon is a global alternative investment manager founded in 1988 by John Angelo and Michael Gordon who together ran the arbitrage department of L.F. Rothschild in the 1980s. The firm focuses on four main investment disciplines: credit, real estate, private equity, and multi-strategy.
Advent International Corporation is an American global private equity firm focused on buyouts of companies in Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, growth and strategic restructuring in five core sectors.
Highland Capital Management is an alternative investment management firm that manages hedge funds, structured investment vehicles and mutual funds. The firm invests in global public equities, as well as fixed income markets with a focus on leveraged loans, high yield bonds, and structured products.
Centerbridge Partners, L.P. is a multi-strategy private investment firm focused on leveraged buyouts and distressed securities.
The Emory Center for Alternative Investments is a part of the Goizueta Business School at Emory University. The center seeks to provide independent research to the alternative investment industry through papers, conferences, and education. The center primarily focuses on the needs of institutional investors as they navigate the many options available in the alternative investment industry but also partners with asset managers to conduct research in an effort to remain objective. The Center for Alternative Investments focuses on hedge funds, private equity, venture capital, and real estate.
CrossHarbor Capital Partners is an American investment firm, specializing in private equity, based in Boston. CrossHarbor Capital Partners develops and manages private equity investment products in three principal business areas: real assets, distressed securities and mezzanine capital. CrossHarbor has assets under management of $5.5 billion diversified over a half dozen distinct funds. Its client base includes college endowments, state and large organization pension funds and high-net-worth individuals seeking lower fee, high potential opportunities to offset more traditional market investments.
Eaton Partners is a global placement agent that assists in raising capital for funds managed by some of the largest private equity firms, hedge funds, real assets and real estate funds in the world. The firm is also one of the oldest placement agents in the private funds industry. Eaton Partners raises capital primarily from institutional investors including private and public pension funds, endowment funds, family offices, fund of funds, foundations and other large pools of money that invest in alternative asset classes.
Novo Banco, SA, trading under the name Novobanco, is a major Portuguese financial bank headquartered in Lisbon, Portugal. Following the entry into force of European Banking Supervision in late 2014, Novo has been designated as a Significant Institution and is supervised by the European Central Bank.
John Patrick Grayken is an American-born Irish billionaire financier, the founder and chairman of the private equity firm Lone Star Funds.
Asante Capital Group is a private equity advisory firm with offices in London, New York City, Hong Kong, and Munich. The firm is active across primary capital raising, secondaries advisory and direct investment transactions. Asante partners with fund managers globally and across the strategy spectrum including buyout, growth, venture, private debt, infrastructure and real assets. To date, Asante has assisted the placement of over 100 funds and transactions with more than 60 notable investment firms, including Welsh Carson Anderson & Stowe, Chequers Capital, Creandum, LLR Partners, Montagu Private Equity, One Equity Partners, Summit Partners, NIO Capital, Whitehorse Liquidity Partners, and others.