Lone Star Said to Name Collin to New President PositionSarah Mulholland and Hui-yong Yu
Lone Star Funds, the world’s biggest buyer of delinquent mortgages, promoted Andre Collin to the new role of president of the Dallas-based private-equity firm, reporting to Chairman John Grayken, according to an e-mail sent to investors.
All of Lone Star’s division heads now report to Collin, effective the start of this month, according to the Jan. 13 e-mail, whose contents were provided by one of its recipients. Collin’s promotion will strengthen Lone Star’s senior management ranks and free up Grayken to focus more on finding investments and setting the firm’s strategic direction, said the person, who asked not to be identified because the e-mail was private.
Grayken’s lack of a successor was raised as a concern at a May 2013 meeting of the state of Oregon pension fund, one of Lone Star’s oldest and largest investors. Grayken, 57, has faced such questions since the 2007 resignation of his longtime right-hand man, former Vice Chairman Ellis Short.
Collin, 52, joined Lone Star in 2007. Before his new post, he was president of the Americas for the firm, according to its website. Sam Loughlin, another Lone Star executive, assumed Collin’s previous job, according to the e-mail.
Jed Repko, a spokesman for Lone Star, declined to comment on Collin’s promotion.
Prior to joining Lone Star, Collin spent three years at Canada’s PSP Investments, where he managed more than $8 billion of commercial real estate assets in Europe, Asia and the Americas, according to Lone Star’s website. Before PSP, he was president and chief operating officer of the real estate unit of Canadian pension fund Caisse de Depot et Placement du Quebec. He is a chartered accountant and holds a bachelor’s degree from Montreal’s Ecole des Hautes Etudes Commerciales and a master’s of business administration from McGill University, according to the website.
Lone Star in October finished raising a $6.6 billion commercial real estate debt and equity fund, about half of which has been earmarked for investment in Europe. Grayken committed $330 million of his own money to the fund. Additionally, the firm last May finished raising $5.1 billion for a residential-focused fund.
Lone Star has raised 12 private-equity funds with combined capital pledges of more than $45 billion since 1995. The firm specializes in buying assets from financial institutions seeking to cut debt or raise capital.
The company made its name buying distressed loan portfolios and lenders in Asia starting in the late 1990s, with investments ranging from golf courses in Japan to office towers in Seoul. Lone Star typically focuses on assets that have a real estate component.