Lone Star was founded by John Grayken. Since the establishment of its first fund in 1995, Lone Star has organized 23 funds with aggregate capital commitments totaling approximately $87 billion.
Brazos Fund, L.P. (“Brazos Fund”) closed in 1995 with approximately $246 million of capital commitments and subsequently targeted investments primarily in debt and real estate in North America. Brazos Advisors, L.L.C. (the predecessor to Hudson Advisors L.P.) was established in 1995 to carry out the day-to-day management and servicing of the assets acquired by Brazos Fund.
Mr. Grayken next organized Lone Star Opportunity Fund, L.P. (“Lone Star Opportunity Fund”) which was formed in November 1996 and held its final closing in March 1997 with capital commitments of $396 million.
During 1995 and 1996, certain Lone Star Funds began actively investing in Canada, establishing themselves as large acquirers of debt in Canada. Based on the success of the migration outside of U.S. markets, the strategic decision was made by Mr. Grayken to implement a global platform in 1997. Since that time, certain Lone Star Funds have invested broadly across the U.S., Western Europe, and East Asia.
From 1998 to 2004, certain Lone Star Funds invested primarily in East Asia (Japan, Korea, Indonesia, and Taiwan), following the collapse of the real estate bubble in Japan in the early 1990s and the broader financial crisis in East Asia in the late 1990s.
In 2005, investment activity in Europe began to intensify after the introduction of the Eurozone, resulting in the consolidation and deleveraging of financial institutions. During 2007, Lone Star began to see significant investment opportunities re-surfacing in the U.S. as capital flows slowed dramatically and illiquidity became widespread during and following the global financial crisis.