Lone Star Funds To Mop Up $ 20 Billion

WSJ says that with an eye to buy troubled mortgages and distressed debt, John Grayken plans to mop up $ 20 billion. Grayken heads Lone Star Funds, a real estate private equity firm.

Grayken is doing his bit to help Lone Star Funds raise that money. He is foregoing more than 50% of his fees. Lone Star Funds may have sourced about $ 13 billion since 1995. According to WSJ, that Lone Star Funds fared much better than its rivals. WSJ feels that the cut indicates the clout of real estate investors. It also indicates the desperation the industry is facing after a disastrous performance last year.