Lone Star-Owned German Bank IKB Is Exposed to Collapse of UK Mortgage Firm MFS

A German bank owned by US investment firm Lone Star Funds is among the growing list of lenders exposed to Market Financial Solutions Ltd., the latest example of how the local UK firm’s collapse has spilled across foreign credit markets.

IKB Deutsche Industriebank AG made a £29 million ($39 million) loan facility to Credit Capital Corporation Ltd., one of the many companies within the network of MFS once controlled by founder Paresh Raja, according to an insolvency filing. The loan was made in 2015 to fund Credit Capital Corporation’s loans within the group.