Lone Star Funds has completed a final close for its latest distressed debt fund on $5.6 billion, Private Debt Investor’s sister publications Real Estate Capital and Private Equity International reported.
The Dallas-based alternative asset manager had originally targeted $5 billion for the Lone Star X (LSF X) fund, which includes two vehicles: the Lone Star Fund X (US) and Lone Star Fund X (Bermuda), the company announced on 15 November. The final close amount includes commitments and an “anticipated co-investment from associated entities”.
The fund targets opportunistic real estate, corporate and consumer debt in the North America, Latin America, Europe, and Asia-Pacific markets, according to August meeting documents of the New Mexico Educational Retirement Board, which has made a $150 million commitment to the fund. LSF X will target a 25 percent gross return.
Other LP contributors to the LSF X fund include the Teacher Retirement System of Texas ($300 million); Chicago Policemen’s Annuity & Benefits Fund ($15 million); Los Angeles Fire & Police Pension System ($40 million); and the Teachers' Retirement System of Louisiana ($75 million), according to PDI data.
The firm launched its latest fund this June, SEC filings show. Lone Star closed the previous distressed debt Fund IX in June 2014, with $7.2 billion in commitments raised, targeting real estate, corporate, and consumer debt in the Americas, Europe and Japan, according to its website.
Founded in 1995, Lone Star made the upper ranks of the Private Debt Investor’s top 10 fundraising rankings. The firm has $67.1 billion in assets under management.