Lone Star’s Irish Unit Invests $817 Million in 2013 Deals

Lone Star Funds’ Irish unit invested at least $817 million in deals this year as the private-equity firm seeks to profit from Europe’s fiscal crisis.

Lone Star International Finance Ltd. invested in “a number of deals” in the nine months through September, according to accounts filed with the Irish companies registration office. While the documents show a $2.8 million loss for 2012, the Dublin-based firm declared dividends of $5.1 million last year.

John Grayken, chairman and founder of Lone Star, is raising money from investors to buy soured property loans and other assets as European banks seek to shore up earnings battered by the sovereign-debt crisis and tougher capital rules. The Irish unit invests in asset-backed loans, bonds and “other financial interests,” the filings showed, without giving details.

The Irish unit had about $2 billion of assets at the end of last year, with declared dividends of more than $60 million since 2006, filings show. While the filings don’t show the division’s investments, they list a group of about 10 active subsidiaries registered in Dublin. These firms describe the nature of their businesses as purchasing assets including commercial mortgage-backed securities and non-performing loans.

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