Company type | Private |
---|---|
Industry | Private equity |
Founded | 1995 |
Founder | John Grayken |
Headquarters | Tower at Cityplace Dallas, Texas, United States |
Key people |
|
Products | Investments, Private equity funds |
AUM | $86 billion (2022) |
Website | www |
Lone Star Funds, legal name of main entity Lone Star Global Acquisitions, Ltd. is an American private equity firm that invests in distressed assets in the U.S., Canada and internationally. [1] The founder of Lone Star established its first fund in 1995 (under a different name) and Lone Star has to date organized 21 private equity funds with total capital commitments since inception of over $86 billion (as of 2022). [2] Lone Star's investors include corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds and high-net-worth individuals. [3] Lone Star Funds has affiliate offices in North America, Europe and Japan. [4]
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. [5] In this capacity, Hudson Advisors LP has managed in excess of $224 billion of assets for Lone Star Funds since inception. [5]
Lone Star was founded by John Grayken. [6] 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, [7] that resolved approximately 1,300 “bad bank” assets resulting from the U.S. savings and loan crisis in the early ‘90s. [8] 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. [9]
Lone Star Opportunity Fund, L.P. followed in 1996, with approximately $396 million of capital commitments. [10] At that time Brazos Advisors, LLC was renamed Hudson Advisors LLC. [11]
After an expansion into Canada in 1995 and 1996, Grayken pursued the launch of a global platform for Lone Star in 1997. [12] Since then, Lone Star has invested extensively in North America, Europe and East Asia. [13] Lone Star invested primarily in East Asia, including Japan, Korea, Indonesia and Taiwan, following the Asian financial crisis in the late 1990s. [14] In the mid-2000s, following the establishment of the Eurozone, Lone Star increased its investment focus in Europe. [8] And with the onset of the global financial crisis, from 2007 Lone Star was again actively investing in the U.S. [6]
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. [15] 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. [16]
In July 2015, Lone Star acquired the UK property investment and development company Quintain for £700 million. [17]
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. [18] 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. [19]
Lone Star invests in a variety of asset classes, primarily distressed opportunities in developed markets. [20]
The following list shows the company's various funds. [21]
Fund | Vintage Year | Committed Capital |
---|---|---|
Lone Star Value-Add Fund I | 2020 | $759M [22] |
Lone Star Real Estate Fund VI | 2019 | $4.7B [23] |
Lone Star Residential Mortgage Fund II | 2019 | $761M [23] |
Lone Star Fund XI | 2019 | $8.1B [24] |
Lone Star Fund X | 2017 | $5.5B [24] |
Lone Star Fund X | 2016 | $5.5B |
Lone Star Real Estate Fund V | 2016 | $5.8B |
Lone Star Real Estate Fund IV | 2015 | $5.8B [25] |
Lone Star Residential Mortgage Fund I | 2015 | $1.3B [26] |
Lone Star Fund IX | 2014 | $7.2B [27] |
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 |
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