Thoughts on Lone Star Funds?

Does anyone have an opinion on Lone Star Funds? Specifically interested in their corporate buyout / PE arm and any distressed debt investments that they may be involved in.

Any information on comp, prestige, work-life balance would also be appreciated.

 

They seem very, very sketchy. Easily the lowest profile of any $50Bn+ firm I know. The whole Lone Star / Hudson Advisors deal always weirded me out too.

A handful of their senior guys left to start Paceline which has been targeting a $1Bn fundraise for what seems like forever now. I know Paceline was intended to focus on corporate PE but I’ve heard through the grapevine that they’ve been doing a lot more debt and real estate.

 

Second this - It is a very weird dynamic with the breakdown between who is Hudson and who is Lone Star. Few years ago they went through a fair amount of layoffs in US, lots of turnover overall.

 

Lone Star employees are mostly deal originators or head of regions. Mostly MDs and SMDs. Underwriting & AM is done by Hudson (also owned by Grayken). Work life balance in acquisition in RE/PE/Credit is terrible. AM hours are really good though (9-7 NYC). Pay is average. Distressed investments so it's super cyclical = high turnover.

 

Could anyone please share some insights on the 4hr PE case study they usually have in London? Any tips appreciated! 

Also, keen to hear your views on culture, dealflow, etc.

 

I've heard horrible things about Lone Star - Is the culture really that bad? 

 

North American PE team consists of really sharp deal guys. For a fund of their size doing deals of their size, they have really terrible PR (no proper website, the Hudson Advisors dynamic, etc.). That may or may not be by design. The founder is one of the richest self-made men in the world and he keeps an extremely low profile. But in terms of deal team quality, execution capabilities, returns, the things that really matter - they are solid. Have added some strong talent in their US PE team over the past year or so as well including a really senior MD from Cerberus

 

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