Lone Star Raises $2.7B for 7th CRE Fund

Lone Star Funds held the final close of its latest commercial real estate fund, Lone Star Real Estate Fund VII (LSREF VII), with about $2.7 billion in total capital available.

LSREF VII is expected to have a 63-month investment period and seek a range of investments, including direct commercial real estate equity, debt portfolios, and commercial real estate-related operating enterprises.

“With the ongoing complex and changing real estate landscape, LSREF VII anticipates deep-value and special situation investment opportunities across Europe, North America and Japan,” said Lone Star CEO, Donald Quintin.

The previous vintage of the firm’s commercial real estate series, LSREF VI, closed in June 2019 with about $4.6 billion in aggregate capital commitments. The first fund in the series closed in 2008 at $2.4 billion, and the largest vintage so far was LSREF III, which raised $7 billion in 2013. In total, the series has raised $33.8 billion, inclusive of the fund’s close.

Since the establishment of its first fund in 1995, the private equity firm has organized 25 private equity funds with aggregate capital commitments totaling approximately $95 billion.

In June, the firm completed fundraising for Lone Star Fund XII, the latest in its Opportunity Fund series, raising around $5.3 billion. Last month, the firm agreed to acquire Carrier Global’s Commercial and Residential Fire business for $3 billion through an undisclosed affiliate.