Lone Star Fund V (U.S.), L.P. and Lone Star Fund V (Bermuda), L.P. (collectively, “Fund V”) were formed in September 2004 with $5.0 billion in combined capital commitments. Over its 40 month commitment period, Lone Star invested substantially all of Fund V’s equity capital in approximately 299 transactions with an aggregate purchase price of approximately $16.0 billion. Transactions consummated in Fund V included investments, directly or through joint ventures, in secured and corporate unsecured non-performing loans, operating companies, portfolios of distressed real estate debt and equity products, and financially-oriented operating companies.
During the early stages of Fund V’s investment period, distressed opportunities continued to expand in Germany as approximately 33% 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.