Lone Star Funds
|Headquarters||Dallas, Texas, United States|
|Key people||John Grayken, Founder & Chairman|
|Products||Investments, private equity funds|
|Total assets||$45 billion|
Lone Star Funds is a private equity firm that invests in distressed assets both in the United States and internationally. 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). Lone Star’s investors include corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds and high net worth individuals. Lone Star Funds has affiliate offices in North America, Europe and Japan.
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. In this capacity, Hudson Advisors LLC has managed in excess of $95 billion of assets for Lone Star Funds since inception.
Lone Star was founded by John Grayken. 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, that resolved approximately 1,300 “bad bank” assets resulting from the U.S. savings and loan crisis in the early ‘90s. 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.
After an expansion into Canada in 1995 and 1996, Mr. Grayken pursued the launch of a global platform for Lone Star in 1997. Since then, Lone Star has invested extensively in North America, Europe and East Asia. Lone Star invested primarily in East Asia, including Japan, Korea, Indonesia and Taiwan, following the Asian financial crisis in the late 1990s. In the mid-2000s, following the establishment of the Eurozone, Lone Star increased its investment focus in Europe. And with the onset of the global financial crisis, from 2007 Lone Star was again actively investing in the U.S.
Lone Star invests in a variety of asset classes, primarily distressed opportunities in developed markets.
Funds Investment Vehicles
|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|
Tokyo Star Bank
Lone Star gained profit by collecting non-performing loans handed over from the former Tokyo Sowa Bank (now Tokyo Star Bank), which collapsed in 1999 and was then granted 760 billion yen from the Japanese government. However, the profit was transferred to a fund based in Bermuda via an Irish corporation, allegedly a shell, which barred the Japanese government from directly collecting taxes.
The company did not report the profit, but the Tokyo Regional Taxation Bureau recognized the case, corrected Lone Star's books by about 14 billion yen for years 2002 and 2003, and adjusted the company's corporate tax by 5 billion yen, including additional tax. However, the company has not yet paid the tax and, because it owns no domestic assets, the government has not yet been able to seize its property.
- "Fund Summary".
- Ellie Pullen (April 29, 2013). "Lone Star and Credit Suisse buy €6.7bn RPI portfolio". Unquote.com.
- "Kardan sells 27.75% stake in CEE real estate company GTC SA". Property EU. November 17, 2013.
- Chad Eric Watt (August 22, 2010). "Lone Star selling S.E. grocery chain". Dallas Business Journal.
- "Company Overview of Lone Star Funds". Bloomberg BusinessWeek. Retrieved November 24, 2013.
- "About Hudson Advisors". Hudson Advisors. Retrieved November 24, 2013.
- "Hudson Advisors, L.L.C.". Inside View. Retrieved November 24, 2013.
- Megan Barnett (April 29, 2013). "Lone Star". Unquote.com.
- Jenny Anderson (July 30, 2008). "An Investment Firm That Prospered From Past Crises Turns to Mortgages". The New York Times.
- Steve Bills (May 30, 2013). "Distress Specialist Lone Star Turns To Europe". Thomson Reuters.
- "About Lone Star". Lone Star Funds. Retrieved November 25, 2013.
- "Hudson Advisors Successful Track Record". Hudson Advisors. Retrieved November 25, 2013.
- "Brazos Advisors renamed Hudson Advisors; corporate offices relocated". Business Wire. April 9, 1997.
- "Los Angeles Department of Water and Power Retirement Board Interdepartmental Correspondence". Los Angeles Department of Water and Power Retirement Board. August 18, 2010.
- "Ahold completes Bruno's, Bi-Lo sale". Birmingham Business Journal. January 31, 2005.
- Keith Russell (April 7, 2002). "Shoney's a typical fit for Lone Star Funds". The Tennessean.
- Kelly DePonte (May 2010). "An overview of the private equity distressed debt and restructuring markets". Probitas Partners.
- "The Funds". Lone Star Funds. Retrieved November 15, 2013.
- "Lone Star group firm allegedly hid ¥14 billion". Kyodo News. 2008-04-01. Retrieved 2008-05-03.
- "ローンスター、東京国税局から約140億円の申告漏れの指摘" (in Japanese). Reuters. 2008-03-31. Retrieved 2008-05-03.
- 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