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.