Lone Star launching Fund X

The Dallas-based private equity firm is seeking $5bn for its tenth distressed fund. 

Lone Star Funds has launched fundraising for its tenth fund according to an SEC filing shown Wednesday (15 June). The fund, Lone Star Fund X, has a target of $5 billion.

In its filing, Lone Star said that in the event of a single closing of the offering, an aggregate offering limit will be raised to $5.5 billion for the US fund and its companion Bermuda fund. A Lone Star representative declined to comment.

The previous fund in the series, Lone Star Fund IX, closed on more than $7.2 billion in August 2014. Over its 40 month investment period, the fund made investments in single family residential debt, financial and other operating companies and corporate and consumer debt products. Lone Star Fund IX attracted commitments from the Dallas Fire and Police Pension, the Teacher Retirement System of Texas, the New Mexico Educational Retirement Board and others.

In April, Lone Star closed on $5.9 billion for the Lone Star Real Estate Fund V, which will target commercial real estate debt and equity investments in the Americas, Western Europe and Asia. That fund's investors included corporate and public pension funds, sovereign wealth funds, university endowments, foundations and high-net worth individuals. PDI sister publication Private Equity Real Estate reported that 95 percent of the investment base for investors for Real Estate Fund V were returning investors.

Founded in 1995, Lone Star Funds is a private equity firm focused on distressed debt, real estate, equity and credit strategies. Its sixteen funds have garnered a total of over $65 billion in capital commitments. The firm is headquartered in Dallas and it maintains offices in New York, London, Madrid, Frankfurt, Amsterdam, Paris, Tokyo and Hamilton, Bermuda.