Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. private equity fund Lone Star lays off majority of Asia staff -sources

EconomyJul 21, 2021 11:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Kane Wu and Chibuike Oguh

HONG KONG/NEW YORK (Reuters) - Texas-based private equity firm Lone Star Funds has laid off most of its investment team in Asia outside Japan in a major retreat from the region, three people familiar with the situation told Reuters.

The firm let go of around 25 investment professionals in its mainland China, Hong Kong, India offices on July 8, effective immediately, said two of the people, who declined to be named due to the sensitivity of the issue.

The people accounted for nearly 60% of its total workforce in the offices affected, one of the people said.

The retreat mainly resulted from the firm not finding much investment opportunity in Asia outside Japan, the people said.

It comes at a time when private equity dry powder in the region was at a record high $384.9 billion in June, according to data provider Preqin, with global and local firms raising ever bigger funds, and shows some of them are struggling to put the funds to work due to increasing competition and regulatory uncertainty.

Lone Star, which mainly focuses on distressed opportunities, has retained a small number of people in asset management in its Asia offices who manage the firm's current portfolio, they said.

A full retreat would happen after the firm exits all its investments in the region, they said.

A Lone Star spokesperson referred to the firm's announcement on July 8 about global business consolidation and reorganisation in Asia. Under the new structure, Donald Quintin and André Collin, who are in charge of the firm's opportunities funds and commercial real estate funds in Europe and the Americas, respectively, would assume responsibilities for Asia.

Lone Star said in that announcement it had made other changes to streamline Asia operations and realigned its staffing levels in the region, without mentioning details.

The spokesperson declined to comment further.

Lone Star, first established in 1995, set up its Asia offices outside Japan only in recent years with its regional headquarters in Hong Kong, said one of the people. It manages three types of funds - the commercial real estate fund, the opportunity fund and the U.S. residential mortgage fund.

It raised $4.6 billion in the global Lone Star Real Estate Fund VI and $8.1 billion in Lone Star Fund XI in 2019. Most recently it closed a $759 million value-add fund in August 2020, according to the firm's website.

In an internal email dated July 9, which Reuters viewed, Lone Star's President and Chief Legal Officer Bill Young also announced the firm's former Asia President Tony Messina will take a new role as senior managing director, origination, on its commercial real estate platform.

Young did not mention the layoffs or the reason behind the reshuffle in the email.

 

(This story was corrected to remove Singapore in paragraph 2; and corrected percentage in paragraph 3)

 

 

U.S. private equity fund Lone Star lays off majority of Asia staff -sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email