July 24, 2021

Market and Financial News

Market and Financial News Aggregator

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

4 min read

Article content

HONG KONG/NEW YORK — 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.

Advertisement

Article content

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.

Advertisement

Article content

A Lone Star spokesperson referred to the firm’s announcement on July 8 about global business consolidation and reorganization 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.

Advertisement

Article content

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. (Reporting by Kane Wu in Hong Kong and Chibuike Oguh in New York; Editing by Sumeet Chatterjee and Muralikumar Anantharaman)

Advertisement

In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post.

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Reuters

2021-07-21 23:09:23

All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator


Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.