Lone Star Funds (“Lone Star”) today announced the final close of its latest residential mortgage fund, Lone Star Residential Mortgage Fund IV, L.P. (“LSRMF IV” or the “fund”). Total capital committed to the fund is in excess of $1 billion, providing LSRMF IV with the ability to invest in over $10 billion of mortgage loans.

LSRMF IV will leverage Lone Star’s extensive origination, financing and investment experience to programmatically invest in newly originated, performing U.S. non-agency mortgage loans. Non-agency borrowers generally include self-employed individuals and small business owners who do not have access to traditional agency and government-backed mortgages, despite often having strong credit profiles.

The fund held its initial close in March 2025, and since that time LSRMF IV has already committed approximately 33% of the fund’s capital, demonstrating the significant opportunity set in this growing market.

“We are pleased to reach this milestone for LSRMF IV and believe it directly reflects the clear need for private capital to fund mortgages to borrowers in this segment of the market,” said Donald Quintin, Chief Executive Officer of Lone Star. “For more than a decade, Lone Star has been supporting the U.S. housing market by committing capital to mortgages which fall outside government-backed agency lending rules. We believe the tailwinds for this market will continue to drive growth opportunity for the platform. We are deeply appreciative of the investor support we have received to date to pursue this strategy and look forward to continuing to work with our extensive and growing network of mortgage origination partners.”

Lone Star’s standalone Residential Mortgage Fund series was launched in 2014. Since inception, certain Lone Star Funds have purchased more than $20 billion in unpaid principal balance of newly originated mortgage loans across more than 40,000 individual mortgages nationwide. Lone Star developed a securitization platform known as COLT to finance the investments, achieving many firsts in the securitization market, including issuing the first securitization of newly originated non-agency loans post-financial crisis as well as the first securitization of non-agency loans to receive a AAA rating post-financial crisis. Cumulatively, Lone Star has now issued 68 COLT securitizations, with participation by over 200 bond investors in the COLT program.

To learn more about the Lone Star Residential platform and its COLT securitization platform, visit www.lonestarresidentialmortgagefunds.com.

About Lone Star

Lone Star is a leading investment firm with its principal office in London, UK advising funds that invest globally in private equity, credit and real estate. The firm has been successfully navigating complex situations for over 30 years. The funds are experienced value investors that seek opportunities in situations that are in flux or complicated by specific structural or financial factors, regardless of the prevailing market environment. Our deep bench of senior leaders and expert deal professionals ensures a strong foundation for successful investments and strategic decision-making. Since the establishment of its first fund in 1995, Lone Star has organized 26 private equity funds with aggregate capital commitments totaling approximately $96 billion. For more information regarding Lone Star Funds, go to www.lonestarfunds.com. Follow us on LinkedIn.

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