Lone Star Fund V (U.S.), L.P. and Lone Star Fund V (Bermuda), L.P. (collectively, “Lone Star Fund V”), formed in September 2004, held their final closings in December 2004 with $5.1 billion in combined capital commitments. Over its 40 month investment period, Lone Star Fund V invested substantially all of its equity capital in 56 investments comprised of 4,613 assets with an aggregate purchase price of approximately $16.7 billion. Transactions consummated by Lone Star Fund V included investments, directly or through joint ventures, in secured and corporate unsecured non-performing loans, real estate and financially oriented and real estate-rich operating companies.
During the early stages of Lone Star Fund V’s investment period, distressed opportunities continued to expand in Germany as approximately 33% of the capital was invested in the country. Major acquisitions in Germany included a mortgage bank that required recapitalization, as well as numerous purchases of non-performing loan portfolios. Investment activity in the U.S. also began to accelerate upon signs of weakness in the subprime residential mortgage market.