Lone Star’s senior managing director with responsibility for all European opportunity fund origination, Bruno Scherrer, has resigned, bringing an end to his 16-year career with the global private equity firm.
Scherrer, a former airborne commando unit officer in the French Special Forces during the early 1990s, has worked at Lone Star since 1997, prior to which he worked in Lehman Brothers’ mergers and acquisitions group at and its principal business group in London.
In Lone Star globally, Scherrer ranks as one of the five most senior members of the firm, under founder John Grayken.
Olivier Brahin is Lone Star’s senior managing director with responsibility for investing the private equity firm’s commercial real estate fund in Europe, and Angus Dodd is UK managing director for real estate.
Yesterday, Lone Star lodged an SEC filing for its next global commercial real estate fund, Lone Star Real Estate Fund (LSREF) III, seeking to raise $6bn in a consistent investment strategy to the LSREF II, aiming to for a first closing in the fourth quarter.
If Lone Star meets its capital raising target, it will be the global private equity firm’s largest ever global real estate fund, eclipsing the $5.5bn raised for LSREF II in 2011, which is expected to be fully deployed by the end of the summer.
The LSREF series of funds seek to invest in sub and non-performing commercial real estate loans, as well as distressed real estate companies, CMBS and subordinated debt, and well as multi-family residential companies and debt.
Lone Star’s next big win in Europe is the acquisition of Eurohypo’s pool of sub and non-performing UK real estate loans, thought to carry an unpaid outstanding balance of just over £1bn. Commerzbank is expected to announce the deal by mid July.
In December, Lone Star bought Germany’s State-owned TLG Immobilien paying for €1.1bn, financed with a €500m corporate loan by Citigroup and RBC Real Estate Capital Partners, a unit of the Royal Bank of Canada (RBC).
Citi and RBC also financed Lone Star’s acquisition of the Lehman Brother legacy CDO, Excalibur, and the private equity firm’s December 2011 acquisition of Project Royal, Lloyds Banking Group’s maiden UK non-performing loan portfolio.
Lone Star declined to comment.