Lone Star raises $333.4 million for distressed debt fund

Dallas-based Lone Star Funds has raised $333.4 million for its recently launched Lone Star Fund VIII, according to a filing with the Securities and Exchange Commission. The distressed debt fund launched this year with a $5 billion fundraising goal.

Lone Star’s most recent fundraising activity centered on two funds: Lone Star Fund VII, which focused on residential loans and property lenders, and Lone Star Real Estate Fund II, for commercial assets. Real Estate Fund II finished raising $5.5 billion in May 2011 and completed 17 investments with an aggregated price of $8.3 billion and included investments in distressed commercial real estate debt and equity products in the United States, Western Europe and Japan.

Fund VII finished fundraising in July 2011 with $4.6 billion in equity commitments. Fund VII has completed 30 investments with an aggregate price of $11.2 billion. Investments were located