Distress Specialist Lone Star Turns To Europe


As the euro zone crisis eases to a dull, chronic economic ache, U.S. distress investors are beginning to look across the Atlantic for business opportunities. Lone Star Funds, the Dallas-based buyout shop with a fresh $5 billion of dry powder, has done a series of deals with banks on the Continent in an apparent bet that the worst is past and Europe’s troubled financial sector is poised to recover.

Lone Star, founded in 1995 by John Grayken, a veteran of the savings-and-loan bailout of the 1990s, closed its eighth distressed debt fund in May at its $5 billion hard cap. The size of Lone Star Fund VIII marks a ...

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