Former Lone Star Funds exec targets over $1 bln for first-time fund

Everything is bigger in Texas, even debut funds.

Paceline Equity Partners, founded by Samuel Loughlin, the former head of North American investments at Lone Star Funds, is targeting $1.25 billion for its debut fund, a person with knowledge of the firm told Buyouts. The Dallas-based firm will make special situations investments in private equity, corporate debt and real assets, the source said.

It’s not clear if the fund is officially in the market. No one from Paceline responded to a request for comment.

Chief Executive Officer Loughlin launched Paceline earlier this year. He left Lone Star last year, according to the New York Times.

At the time, Loughlin was replaced by Nick Beevers. However, Beevers then took over leadership of Lone Star’s long-time asset management platform, Hudson Advisors. Lone Star moved Brian Collyer into the role of leading North America investments. Collyer also leads Latin America investments.

Loughlin is joined by several other executives who used to work at Lone Star or Hudson Advisors:  

• Leigh Sansone, chief investment officer, worked at Hudson Advisors as CIO;
• Grant Wilbeck, head of investments, most recently worked as a senior managing director at Lone Star leading debt and equity for North America region;
• Kyle Volluz, general counsel, most recently worked as managing director at Hudson Advisors;
• Tara O’Grady, chief financial officer, was formerly a managing director at Hudson Americas; and
• Victor Sansone, chief operating officer, was most recently a senior managing director at Lone Star Funds, where he focused on residential and consumer assets in North America.

Paceline is just one of several high-profile spinouts in recent years. Others include Saroras Private Capital, targeting $600 million, which was formed by a group of executives from Welsh Carson Anderson & Stowe; Nonantum Capital Partners, formed by ex-Charlesbank executive Jon Biotti, which closed its debut fund on $385 million earlier this year; Novalpina Capital, launched by TPG’s former European chief Stephen Peel; and Cove Hill Capital, launched by former Bain Capital executive Andrew Balson, which closed on more than $1 billion last year.

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Update: This story was updated to include that Brian Collyer also leads Latin American investments for Lone Star. 

Action Item: Email Paceline at info@pacelineequity.com.