Payday loans. Ripped-off soldiers. Foreclosed homes. Is Lone Star Funds just a Loan Shark?
Lone Star Funds, a private equity manager that has raised nearly $60 billion, is among the world’s top private debt investors. But a closer look at its investments – predatory payday loans, ripped off active-duty soldiers, and complaint-ridden subprime home loans – raises the question: Is Lone Star Funds just a loan shark?
Lone Star Fund has focused on distressed debt. But as traditional distressed assets become harder to find, is Lone Star Funds pushing beyond investors’ comfort zones?