Chart of the week: Lone Star Funds tops real estate debt charts

The firm has raised the most capital from closed-ended funds since 2010.

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Madison Realty Capital agreed a $60 million loan facility with Heritage Real Estate Partners, PDI sister title Real Estate Capital learned this week. 

It has been a busy March for Madison, which earlier this month bought a mixed-used tower in New York with USAA Real Estate, but it is still a minnow compared with other debt fund managers.

A study of closed-ended real estate debt funds by PDI Research & Analytics shows that Lone Star Funds far exceeds other GPs in terms of capital. Since 2010 the firm has gathered $36.6 billion from its real estate private debt vehicles, almost five times that of Pacific Investment Management Co, which ranked second.

Lone Star’s biggest vehicle is the $7.2 billion Lone Star Fund IX, which closed in 2014. Late last year it launched Lone Star Real Estate Fund V, a distressed debt fund targeting $5 billion.

Despite having just 20 percent of the total number of funds, the top 10 managers account for 60 percent of the $134.8 billion raised by closed-ended real estate private debt vehicles globally. The US has been the most active region, with 120 of the 189 funds that have held a final close since 2010 being raised by US-based fund managers.