Lone Star seeks investment opportunities in markets that have suffered an economic and/or banking crisis, resulting in a dislocation in asset pricing and 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 Funds are able to obtain a competitive advantage due to Lone Star’s ability to move quickly and deploy large amounts of capital through Lone Star's large 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), CDOs (collateralized debt obligations, the underlying assets of which generally consist of RMBS), 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.