Lone Star Funds

Lone Star Funds was founded in 1995 by John Grayken, following his leadership of Brazos Partners, a joint venture that resolved assets from the U.S. savings and loan crisis. The firm has since organized 25 private equity funds with total capital commitments exceeding $95 billion. Lone Star is supported by Hudson Advisors LP, a global asset management company also controlled by Grayken that provides due diligence and asset management services.

The firm focuses on asset-heavy and cash-flowing opportunities in developed markets. Historically, Lone Star has been a major player in distressed debt, investing heavily in East Asia following the 1997 financial crisis and in European distressed assets and mortgages following the 2008 global financial crisis. Its investment activity spans corporate buyouts, real estate portfolios, and credit products.

Notable activity includes the acquisition of major financial institutions like Tokyo Star Bank and Novo Banco, as well as large-scale corporate acquisitions in the building materials and industrial sectors. The firm also briefly entered motion picture financing through a deal with Sony Pictures in 2014. Lone Star continues to be an active opportunistic investor, raising multi-billion dollar funds for real estate and corporate equity.