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Lone Star Funds

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Lone Star Funds is an American private equity firm that invests in distressed assets in the U.S., Canada and internationally.[2] The founder of Lone Star established its first fund in 1995 (under a different name) and Lone Star has to date organized fifteen private equity funds with total capital commitments since inception of over $59 billion (as of June 2015).[3] Lone Star’s investors include corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds and high-net-worth individuals.[4] Lone Star Funds has affiliate offices in North America, Europe and Japan.[5]

Hudson Advisors LLC, an approximately 800-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.[6] In this capacity, Hudson Advisors LLC has managed in excess of $95 billion of assets for Lone Star Funds since inception.[7]

History[]

Lone Star was founded by John Grayken.[8] 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,[9] that resolved approximately 1,300 “bad bank” assets resulting from the U.S. savings and loan crisis in the early ‘90s.[10] 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.[11]

Lone Star Opportunity Fund, L.P. followed in 1996, with approximately $396 million of capital commitments.[12] At that time Brazos Advisors, LLC was renamed Hudson Advisors LLC.[13]

After an expansion into Canada in 1995 and 1996, Grayken pursued the launch of a global platform for Lone Star in 1997.[14] Since then, Lone Star has invested extensively in North America, Europe and East Asia.[15] Lone Star invested primarily in East Asia, including Japan, Korea, Indonesia and Taiwan, following the Asian financial crisis in the late 1990s.[16] In the mid-2000s, following the establishment of the Eurozone, Lone Star increased its investment focus in Europe.[10] And with the onset of the global financial crisis, from 2007 Lone Star was again actively investing in the U.S.[8]

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]

Investment approach[]

Lone Star invests in a variety of asset classes, primarily distressed opportunities in developed markets.[20]

Motion picture financing[]

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.[21] 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.[22]

Funds investment vehicles[]

Fund Vintage
Year 		Committed
Capital
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
Lone Star Residential Mortgage Fund I 2015 $1.3B
Lone Star Fund IX 2014 $7.2B
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

[23][24][25][26]

References[]

  1. ↑ "Fund Summary". Archived from the original on 2011-12-08. https://web.archive.org/web/20111208160943/http://www.lonestarfunds.com/En/lonestarfunds_summary.htm.
  2. ↑ Ellie Pullen (April 29, 2013). "Lone Star and Credit Suisse buy €6.7bn RPI portfolio". Unquote.com. http://www.unquote.com/benelux/news/2264852/lone-star-and-credit-suisse-buy-eur67bn-rpi-portfolio.
  3. ↑ "Kardan sells 27.75% stake in CEE real estate company GTC SA". Property EU. November 17, 2013. http://www.unquote.com/benelux/news/2264852/lone-star-and-credit-suisse-buy-eur67bn-rpi-portfolio.
  4. ↑ Chad Eric Watt (August 22, 2010). "Lone Star selling S.E. grocery chain". Dallas Business Journal. http://www.bizjournals.com/dallas/stories/2010/08/23/story7.html?page=all.
  5. ↑ "Company Overview of Lone Star Funds". Bloomberg BusinessWeek. http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=21543. Retrieved November 24, 2013.
  6. ↑ "About Hudson Advisors". Hudson Advisors. http://www.hudson-advisors.com/En/about.htm. Retrieved November 24, 2013.
  7. ↑ "Hudson Advisors, L.L.C.". Inside View. Archived from the original on November 26, 2013. https://archive.is/20131126002113/http://www.insideview.com/directory/hudson-advisors-l-l-c. Retrieved November 24, 2013.
  8. ↑ 8.0 8.1 Megan Barnett (April 29, 2013). "Lone Star". Unquote.com. http://upstart.bizjournals.com/news-markets/top-5/2008/08/25/Lone-Star-John-Grayken-Profile.html.
  9. ↑ Jenny Anderson (July 30, 2008). "An Investment Firm That Prospered From Past Crises Turns to Mortgages". The New York Times. https://www.nytimes.com/2008/07/30/business/worldbusiness/30iht-lonestar.1.14878273.html?_r=2&.
  10. ↑ 10.0 10.1 Steve Bills (May 30, 2013). "Distress Specialist Lone Star Turns To Europe". Thomson Reuters. http://privatemarkets.thomsonreuters.com/distress-specialist-lone-star-turns-to-europe/21087886.article?sm=21087886.
  11. ↑ "About Lone Star". Lone Star Funds. http://www.lonestarfunds.com/about-us/history/. Retrieved November 25, 2013.
  12. ↑ "Hudson Advisors Successful Track Record". Hudson Advisors. http://www.hudson-advisors.com/En/record.htm. Retrieved November 25, 2013.
  13. ↑ "Brazos Advisors renamed Hudson Advisors; corporate offices relocated". Business Wire. April 9, 1997. http://www.thefreelibrary.com/Brazos+Advisors+renamed+Hudson+Advisors;+corporate+offices+relocated.-a019289591.
  14. ↑ "Los Angeles Department of Water and Power Retirement Board Interdepartmental Correspondence". Los Angeles Department of Water and Power Retirement Board. August 18, 2010. http://retirement.ladwp.com/AgendaItems/Agenda%20-%2020100825%20Item%2009.pdf.
  15. ↑ "Ahold completes Bruno's, Bi-Lo sale". Birmingham Business Journal. January 31, 2005. http://www.bizjournals.com/birmingham/stories/2005/01/31/daily4.html?t=email_story.
  16. ↑ Keith Russell (April 7, 2002). "Shoney's a typical fit for Lone Star Funds". The Tennessean. http://www.bizjournals.com/nashville/stories/2003/09/29/story3.html?page=all.
  17. ↑ "Lone Star buys Wembley Arena owner Quintain for £700m", The Guardian, 29 July 2015. Retrieved on 29 July 2015. 
  18. ↑ Chad Bray (March 31, 2017). "Lone Star to Buy Controlling Stake in Portugal’s Novo Banco". The New York Times. https://www.nytimes.com/2017/03/31/business/dealbook/portugal-lone-star-novo-banco.html.
  19. ↑ "Lone Star takes charge of Portugal's state-rescued Novo Banco". Reuters. October 18, 2017. https://www.reuters.com/article/us-portugal-novobanco-lone-star/lone-star-takes-charge-of-portugals-state-rescued-novo-banco-idUSKBN1CN1HG.
  20. ↑ Kelly DePonte (May 2010). "An overview of the private equity distressed debt and restructuring markets". Probitas Partners. http://www.probitaspartners.com/pdfs/Distressed+-+Overview.pdf.
  21. ↑ "Sony Nails $200 Million Co-Financing Deal with LStar Capital, Citibank". The Wrap. April 9, 2014. http://www.thewrap.com/sony-nails-200-million-co-financing-deal-lstar-capital-citibank/.
  22. ↑ Faughnder, Ryan. "Sony Pictures and co-financing partner LStar Capital cut ties", Los Angeles Times, 2017-07-17. (in en-US) 
  23. ↑ "The Funds". Lone Star Funds. http://www.lonestarfunds.com/funds-raised/. Retrieved November 15, 2013.
  24. ↑ Peter Flanagan. "Lone Star aims for more deals in Europe", Irish Independent, April 26, 2015. 
  25. ↑ Steve Gelsi. "Lone Star's first home mortgage fund beats $1 bln target", Buyouts Insider, January 5, 2015. 
  26. ↑ Timothy Pollard. "Largest closed-end, private real estate funds raised in 2014", Pensions & Investments, January 6, 2015. 

External links[]

Template:Private equity and venture capital

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