Lone Star seeks investment opportunities in developed 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
- Lone Star is able to achieve a favorable position in a transaction through its large network of relationships across the globe.
When pursuing investment opportunities, Lone Star evaluates a broad scope 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 dedicated asset management platform and the continual evaluation of exit strategies.