Lone Star seeks investment opportunities in markets that have suffered an economic and/or banking crisis, resulting in a dislocation in asset pricing and the creation of deep-value opportunities. Specifically, Lone Star seeks to capitalize on market conditions in which:
- Liquidity is restricted, and financing is constrained;
- Financial institutions’ balance sheets are under pressure, and there is a need to dispose of high volumes of assets to manage capital, deleverage, and build liquidity; and
- The Lone Star Funds are able to obtain a competitive advantage due to Lone Star’s ability to move quickly and deploy significant amounts of capital through a broad network of relationships across the globe.
When pursuing investment opportunities, Lone Star evaluates a broad range of transactions, including, but not limited to:
- Equity and debt investments in value-oriented assets, including corporate, commercial and single-family residential real estate and consumer debt;
- Other real estate and real estate-related assets;
- Control investments in financially oriented and other operating companies; and
- Securitized products such as RMBS (residential mortgage-backed securities), CMBS (commercial mortgage-backed securities), and other asset-backed securities.
Lone Star’s investment approach focuses on leveraging long-standing relationships with counterparties to source opportunities, a comprehensive bottom-up asset-based underwriting approach, a streamlined approval process, a focused asset management strategy, and the continual evaluation of exit strategies.