Background

Company

Lone Star Management Europe Limited advises the Lone Star Funds on making investments in the European markets. Advisory services include the following business lines: distressed debt and equity assets including commercial real estate, corporate and consumer debt products as well as investments in financial institutions and asset rich operating companies.

Lone Star Management Europe is based in London. The company has a strong network across the continent with affiliates in key European markets, including offices in Germany and France.

Background

Management Team

The members of the management of Lone Star Management Europe Limited are senior professionals with long-term experience and in-depth knowledge in the real estate sector, as well as in capital and financial markets. The management team has demonstrated expertise in complex international transactions. The proven competency of the members of the management is a key success factor of the company.

Background

Business Lines

Lone Star Management Europe and its European affiliates have a proven track record in Western Europe for more than 10 years in providing advisory services to the various Lone Star Funds on investments in the following business lines:

01 |
Commercial Real Estate Debt
  02 |
Commercial Real Estate Equity
03 |
Commercial Real Estate Structured Products
  04 |
Financial Institutions
 
05 |
Corporate Debt
  06 |
Corporate Structured Products
07 |
Residential Real Estate Structured Products
 



Funds

Fund Summary Vintage Year Combined Capital Commitments
Lone Star Real Estate Fund 2008 USD 2.4 billion
Lone Star Fund VI 2008 USD 7.5 billion
Lone Star Fund V 2004 USD 5.0 billion
Lone Star Fund IV 2002 USD 4.2 billion
Lone Star Fund III 2000 USD 2.3 billion
Lone Star Fund II 1999 USD 1.2 billion
Lone Star Opportunity Fund 1997 USD 396 million
Brazos Fund, L.P. 1995 USD 250 million

Lone Star Real Estate Fund

Lone Star Real Estate Fund was organized in December 2007 with $2.5 billion in capital commitments. Lone Star Real Estate Fund targeted real estate and real estate related investments on a global basis.

Limited availability of capital and financing resulting from destabilization of global capital markets provided Lone Star Real Estate Fund with numerous opportunities to acquire real estate and real estate related assets at attractive pricing. Lone Star Real Estate Fund utilized its large pool of capital and global network of professionals to selectively acquire a diverse portfolio of assets throughout Japan, Germany and the U.S.

Lone Star Fund VI

Lone Star Fund VI was organized in December 2007 with $7.5 billion in capital commitments. Lone Star Fund VI targeted financial assets on a global basis, focusing on investments in secured and unsecured debt, mortgage related securities, financially-oriented operating companies and operating companies with significant tangible assets.

Lone Star Fund VI invested primarily in the U.S. residential mortgage market as the scale of the distressed opportunity reached unprecedented levels with the failure of several prominent U.S. investment and commercial banks. Utilizing a dedicated team of professionals based in New York, Lone Star acquired in excess of $45 billion (face) of mortgages and mortgage related securities. The collapse of the U.S. residential market also led to opportunities abroad that included Lone Star Fund VI’s acquisition of a large German financial institution.

Lone Star Fund V

Lone Star Fund V was formed in September 2004 with $5.0 billion in capital commitments from approximately 70 investors. Lone Star Fund V, which acquired in excess of 4,200 assets in approximately 300 transactions, targeted financial and real estate assets on a global basis, focusing on investments in secured and corporate unsecured debt, portfolios of distressed real estate and financially-oriented operating companies.

During the early stages of the Lone Star Fund V investment period, distressed opportunities continued to expand in Germany as approximately 36% of the capital was invested in the region. Major acquisitions in Germany included a mortgage bank that required recapitalization, as well as numerous purchases of non-performing loan portfolios. Investment activity in the U.S. also began to accelerate upon the collapse of the subprime residential mortgage market.

Lone Star Fund IV

Lone Star Fund IV was formed in December 2001 with more than $4.2 billion in capital commitments from approximately 45 investors. In 174 transactions at an aggregate purchase price of approximately $13.0 billion, Lone Star Fund IV acquired global investments in secured and corporate unsecured debt instruments, corporate acquisitions/sponsorships and real estate related opportunities.

Approximately 78% of the capital in Lone Star Fund IV was invested in Japan and South Korea as Lone Star continued to rank among the largest debt buyers in each of these markets. Germany also emerged as an active region as Lone Star Fund IV acquired the first seven portfolios of non-performing loans to trade in the marketplace.

Lone Star Fund III

Lone Star Fund III was formed in July 2000 with more than $2.2 billion in capital commitments from approximately 30 investors. During its 29-month investment period, Lone Star Fund III acquired in excess of 115,000 assets in 235 transactions at an aggregate purchase price of approximately $5.0 billion. Such investments were comprised of secured and corporate unsecured loans, corporate acquisitions, leveraged debt financings and real estate related equity and debt.

Approximately 82% of the capital in Lone Star Fund III was invested in Japan and South Korea. In Japan, Lone Star completed its first acquisition of a distressed financial institution that was successfully restructured and sold back into the market. The balance of the capital was invested in Greater North America, Europe and other countries within Southeast Asia.

Lone Star Fund II

Lone Star Fund II was formed in September 1998 with capital commitments of $1.2 billion. Utilizing Lone Star’s network of affiliated foreign offices and established relationships with foreign counterparties, the principals intensified their pursuit of global real estate-related investment opportunities, especially in Asia.

During its 21-month investment period, Lone Star Fund II acquired in excess of 12,000 assets in 119 transactions at an aggregate purchase price of approximately $2.6 billion. Lone Star established itself as one of the largest foreign buyers of non-performing loans in Asia, investing approximately 75% of the capital of Lone Star Fund II in Japan and South Korea. Lone Star Fund II also invested approximately $345 million in real estate assets located throughout the U.S., Germany and France.

Lone Star Opportunity Fund

Lone Star Opportunity Fund, formed in November 1996, targeted a broad range of investments in various asset classes, property types, transaction structures and geographic areas. With capital commitments of approximately $400 million from many of the same investors that today comprise Lone Star Fund VI and Lone Star Real Estate Fund, the fund invested its capital in more than 50 transactions at an aggregate purchase price of approximately $1.3 billion. The fund’s investments included performing and sub-performing mortgage debt, origination of high loan-to-value first mortgages, and direct ownership of developed and undeveloped real estate. In Lone Star Opportunity Fund, the general partner developed a framework for investing in cross-border transactions in France, Canada, Mexico, and Japan.

Brazos Fund, L.P.

Brazos Fund was formed in March 1995 as a discretionary real estate investment fund with approximately $250 million in capital commitments. The investors in Brazos Fund included corporate and public pension funds, university endowments, private family trusts, and Keystone, Inc. (an affiliate of Robert M. Bass). Brazos Fund was fully invested in May 1996, having acquired 3,878 assets in 19 transactions with an aggregate purchase price of approximately $1.3 billion.

Business Lines

Lone Star Management Europe and its European affiliates have a proven track record in Western Europe for more than 10 years in providing advisory services to the various Lone Star Funds on investments in the following business lines:


For information on the Lone Star Funds please visit www.lonestarfunds.com

Commercial Real Estate Debt

Advisory services for acquisitions of large real estate mortgage-backed loan portfolios as well as single names or single loans with multiple or single assets, in each case backed by real estate mortgages

Commercial Real Estate Equity

Advisory services focus on a broad range of acquisitions of real estate and real estate-related equity investments that would provide the Lone Star Funds with the opportunity to actively manage, reposition, improve or otherwise add value to assets.

Commercial Real Estate Structured Products

Advisory services are provided for the acquisition of structured credit products including large-volume structured financings as well as structured asset-backed securities such as commercial mortgage-backed securities and collateralized debt obligations.

Financial Institutions

Advisory services focus on acquisitions of distressed financial institutions in special situations.

Corporate Debt

Advisory services are performed with regards to the acquisition of corporate distressed single name loans or whole loan portfolios and with regards to special situation lending.

Corporate Structured Products

Advisory services are provided for the acquisition of structured credit products backed by corporate credit exposure including collateralized debt or loan obligations and credit linked notes.

Residential Real Estate Structured Products

Advisory services are provided for the acquisition of residential loans and residential mortgage-backed securities.

Background

Asset Management

Hudson Advisors LLC (Hudson Advisors) performs the day-to-day asset management and servicing of the assets acquired by the Lone Star Funds. Hudson Advisors is a full-service commercial and residential mortgage and corporate distressed debt servicer as well as a real estate asset manager. Through affiliate offices in the European markets Hudson Advisors provides asset management services for the European investments acquired by the Lone Star Funds.

Hudson Advisors’ affiliates located in Europe have a proven track record in key European markets for more than 10 years.

Background

Media

Please find below contact details for media enquiries.


Lone Star Management Europe Limited
Please send enquiries to info@LoneStarEurope.com

Lone Star Germany GmbH
Please send enquiries to info@LoneStarGermany.com
or call Hill & Knowlton Communications GmbH at +49 69 973 62 – 0

Lone Star Advisors France Sarl
Please send enquiries to info@LoneStarFrance.com

Media Contact

Please find below contact details for media enquiries.


Lone Star Management Europe Limited
Please send enquiries to info@LoneStarEurope.com
or call The HeadLand Consultancy, Tom Gough or Howard Lee
at +44 20 7367 5228 / +44 20 7367 5225

Lone Star Germany GmbH
Please send enquiries to info@LoneStarGermany.com or to
Lone-Star-Germany-Presse@hillandknowlton.com or call Hill & Knowlton Communications GmbH at +49 69 973 62 – 0

Lone Star Advisors France SARL
Please send enquiries to info@LoneStarFrance.com

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