Lone Star Funds, legal name of main entityLone Star Global Acquisitions, Ltd. is a globalprivate equity firm that invests incorporate equity,real estate,credit, and other financial assets.[1] The founder of Lone Star established its first fund in 1995 (under a different name) and Lone Star has to date organized 25 private equity funds with total capital commitments since inception of over $95 billion (as of 2024).[2][3][4] Lone Star's investors include corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds and high-net-worth individuals.[5] Lone Star Funds has affiliate offices inNorth America,Europe andJapan.[6]
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.[7] In this capacity, Hudson Advisors LP has managed in excess of $260 billion of assets for Lone Star Funds since inception.[8]
Lone Star was founded byJohn Grayken.[9] From 1993 to 1995, Mr. Grayken was chairman andCEO of Brazos Partners L.P., a joint venture between the Robert M. Bass Group and theFederal Deposit Insurance Corporation,[10] that resolved approximately 1,300 “bad bank” assets resulting from the U.S.savings and loan crisis in the early ‘90s.[11] 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.[12]
Lone Star Opportunity Fund, L.P. followed in 1996, with approximately $396 million of capital commitments.[13] At that time Brazos Advisors, LLC was renamed Hudson Advisors LLC.[14]
After an expansion into Canada in 1995 and 1996, Grayken pursued the launch of a global platform for Lone Star in 1997.[15] Since then, Lone Star has invested extensively in North America, Europe and East Asia.[16] Lone Star invested primarily in East Asia, including Japan, Korea, Indonesia and Taiwan, following the1997 Asian financial crisis.[17] In the mid-2000s, following the establishment of the Eurozone, Lone Star increased its investment focus in Europe.[11][9]
Through its credit affiliate,LStar Capital (officiallyLSC Film Corporation), the company entered the motion picture financing sector when they signed a $200 million deal withSony Pictures in early 2014. The deal gives them a financial stake in nearly all of Sony's upcoming films.[18] 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.[19]
In July 2015, Lone Star acquired the UK property investment and development companyQuintain for £700 million.[20]
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.[21] 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% ofNovo Banco.[22]
Lone Star invests in a variety of asset classes, primarily asset-heavy and/or cash flowing opportunities in developed markets.[23] Investments have included:
Following the bankruptcy ofLehman Brothers, Lone Star purchased $10 billion of the firm's non-performing and performing loans for less than $300 million.[27]
In November 2021, Lone Star acquired a five-hotel portfolio fromHost Hotels & Resorts for $551 million.[34]
In April 2022, Lone Star acquired SENQCIA, a building materials company in Japan, fromThe Carlyle Group.[35]
Stellex Capital Management and Carlyle sold Titan Acquisition Holdings, a ship repair services and marine fabrication company, to Lone Star in June 2023.[36][37]
In May 2024, Lone Star bought ERIKS, the Netherlands-based specialized industrial service provider.[38]
Lone Star acquiredCarrier Global Corporation's commercial and residential fire business, Kidde, for $3 billion in December 2024.[39]
Nippon Paint bought the chemical manufacturer AOC from Lone Star for $4 billion;[when?] Lone Star had acquired the company in 2021.[37][40]
In November 2025, it was announced Lone Star had acquired fromSt. James's Place plc, a multi-asset real estate portfolio located around theSouth East of England andLondon for an undisclosed sum. The portfolio comprised 16 assets, including multi-let industrial, retail and office properties.[41]
