Lone Star Funds

Lone Star Funds was founded in 1995 by John Grayken, following his success resolving 'bad bank' 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. It operates with a global reach, supported by Hudson Advisors LP, an affiliate asset management company that provides due diligence and asset management services.

The firm is known for its focus on distressed assets and asset-heavy opportunities in developed markets. It gained significant prominence for its investments in East Asia following the 1997 financial crisis and in Europe following the establishment of the Eurozone. Lone Star's investment portfolio is diverse, spanning financial institutions, residential and commercial real estate, and industrial corporations.

Notable historical activity includes large-scale acquisitions of non-performing loan portfolios from major banks like Merrill Lynch and Lehman Brothers. It has also taken controlling stakes in various international banks and industrial companies, often specializing in special situations and distressed debt restructuring across North America, Europe, and Asia.