Private equity firm Lone Star Funds, which today confirmed its acquisition of IKB Deutsche Industriebank, plans to refocus the troubled German lender on servicing small to mid-sized companies and cut its risk weighted assets that made it the first casualty of the US sub-prime crisis last June.

IKB, which was put up for sale in January by German state development bank KfW Bankengruppe, was sold to Lone Star for an undisclosed sum in an agreement signed this morning.