Lone Star Funds

Lone Star Funds

Type	Limited partnerships
Industry	Private equity
Founded	1995
Headquarters	Dallas, Texas, United States
Key people	John Grayken, Founder & Chairman
Products	Investments, private equity funds
Total assets	$45 billion[1]
Website	www.lonestarfunds.com

Lone Star Funds is a private equity firm that invests in distressed assets both in the United States 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 twelve private equity funds with total capital commitments since inception of over $45 billion (as of October 2013).^[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, Mr. 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, Mr. 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]

Investment Approach

Lone Star invests in a variety of asset classes, primarily distressed opportunities in developed markets.^[17]

Funds Investment Vehicles

References

External links

• Lone Star Funds official web site
• Uptown Tenants Demand Answers Downtown
• Lone Star Europe official web site
• B-Line, LLC web site
• Corealcredit official web site
• Washington Heights and Inwood Tenants Protest Lone Star Funds
• Suit Filed Against Oregon Public Employees Pension Fund
• Lone Star Found Guilty of Stock Manipulation

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