Sunday 24 September 2017

Lone Star buys up crisis loans to tune of $817m

John Grayken of Lone Star
John Grayken of Lone Star

Donal Griffin

The Irish unit of US private equity giant Lone Star invested $817m (€593.5m) over the past year, including buying loans and asset-backed securities.

Lone Star International Finance invested the cash in "a number of deals" in the year to the end of September, according to accounts filed with the Irish Companies Registration Office.

The accounts do not give a geographic breakdown of the unit's holdings, but the investments are understood to not be confined to Ireland.

While the documents show a $2.8 million loss for 2012, the Dublin-based firm declared dividends of $5.1m. The Irish unit has declared more than $60m in dividends since 2006.

Lone Star's US-born founder and chairman John Grayken is an Irish citizen, one of the country's wealthiest. His giant private equity group is raising money from investors to buy distressed property loans and other assets up for grabs as a result of the European banking crisis.

The unit invests in asset-backed loans and bonds and "other financial interests," the Companies Office filings show.

Jed Repko, a spokesman for Dallas-based Lone Star at the public relations firm Joele Frank, Wilkinson Brimmer Katcher, declined to comment on the Irish unit or elaborate on its investments.

The firm had about $2bn of assets at the end of last year, according to data compiled by Bloomberg News. These firms describe the nature of their businesses as purchasing assets including commercial mortgage-backed securities and non-performing loans. (Bloomberg)

Irish Independent

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