Modern Slavery Act Transparency Statement
Lone Star Europe Acquisitions Limited (“LSEA”) is committed to carrying out its business ethically and prudently, ensuring that the crimes of slavery and human trafficking do not take place in any part of its business or supply chain.

A copy of LSEA’s anti-slavery and human trafficking statement for the financial year ending December 31, 2023 can be obtained by writing to the UK Compliance Department at Lone Star Europe Acquisitions Limited, 12 Queen Anne Street, London W1G 9LF, United Kingdom. Requests will be responded to within 30 days.

Remuneration Disclosure Statement

Introduction
Lone Star Europe Acquisitions Limited (“LSEA” or “the Firm”) is authorized and regulated by the Financial Conduct Authority (“FCA”) as an Exempt CAD firm to conduct the regulated activities of advising and arranging (with a restriction to corporate finance business only). As a small and non-interconnected (“SNI”) MIFIDPRU (as defined below) investment firm, LSEA makes certain qualitative and quantitative disclosures in accordance with the Disclosure chapter of the FCA’s Prudential sourcebook for MiFID Investment Firms (“MIFIDPRU”).

Pursuant to these rules, this document summarizes the:

• The Firm’s approach to remuneration;
• Objectives of the Firm’s financial incentives;
• The Firm’s remuneration decision-making procedures and governance;
• Key characteristics of the Firm’s remuneration policies and practices; and
• Total amount of remuneration awarded to all staff split into fixed and variable remuneration.

In developing the qualitative disclosures in points (i) to (v) above, the Firm has considered its size and internal organization, and the nature, scope and complexity of its activities.

Approach and Objectives
LSEA’s business model and strategy is to provide advisory services to its parent entity Lone Star Global Acquisitions, Ltd. (“LSGA” and, together with its subsidiaries as applicable, “Lone Star”, which is itself regulated by the U.S. Securities and Exchange Commission). LSGA provides investment advisory and related services to families of closed end private funds (the “Funds”).

The Firm’s approach to remuneration is designed so that fixed and variable compensation is consistent with and promotes effective risk management, and does not encourage risk-taking that is inconsistent with the risk profile of the Firm or the risk profile of the Funds.

The Firm believes that it is in the best interest of the Funds, the organization and its employees to fairly compensate its workforce for the value of the work provided. Compensation is designed to be consistent with the competitive market range of the position based on the skills, knowledge, and behaviors required. The compensation program must be flexible enough to recruit and retain a highly qualified workforce.

Governance and Decision Making
The Firm’s Board meets periodically and is responsible for reviewing and approving key risk related materials related to the Firm and has input to or reviews applicable Firm policies. LSEA senior management is responsible for administering and making recommendations with respect to LSEA employees’ compensation, and for confirming that all recommendations are in line with Lone Star’s remuneration policy.

Key Characteristics of Remuneration Policy and Practices
The remuneration policy and practices are designed so that fixed and variable compensation is consistent with and promotes effective risk management, and does not encourage risk taking that is inconsistent with the risk profile of the Firm or the Funds. LSEA endeavors that the fixed component should represent a sufficiently high proportion of total remuneration to enable the operation of a fully flexible policy on variable remuneration, including the possibility of paying no variable remuneration component.

Fixed remuneration is comprised of salary and benefits (including pension contributions, medical cover and life assurance) and is based on an individual’s role, professional experience and organizational responsibility. Fixed remuneration in the form of salary is reviewed annually. Monthly salary payments are non-discretionary, non-revocable and not dependent on performance.

Variable remuneration includes discretionary performance bonuses, which are generally based on a pre-determined target as a percentage of base salary. An additional performance bonus may be awarded for exceptional performance. Performance bonuses are designed to reflect the overall performance of the staff member as well as performance in excess of the staff member’s job description and terms of employment. Other variable remuneration may include sign-on bonuses, retention bonuses, profits interest and severance pay.

Financial and non-financial factors are considered in determining remuneration and include, without limitation, supporting the business strategy, objectives and interests of Lone Star and the Funds, measurement of performance related indicators with respect to the overall performance of the Funds and the staff member, and assessment of the staff member’s compliance with governance and control functions. 

Total Remuneration Split Between Fixed and Variable
The table below sets out the total amount of remuneration awarded by LSEA to all staff split into fixed and variable remuneration.

For the year ended December 31, 2023	£’000
Total Fixed Remuneration	10,980
Total Variable Remuneration	9,522
Total Remuneration1	20,502

 

 

¹Separately from their LSEA remuneration as reflected in the chart, certain employees may participate in employee co-investment vehicles that invest in the Lone Star Funds’ investments and/or receive profits interest for Lone Star Fund investments.