Lone Star launches $5b real estate fund

Lone Star Funds is marketing a fourth real estate fund and aiming to raise $5 billion, according to an SEC filing.

Lone Star Real Estate Fund IV will invest in debt and distressed properties. The fund has an investment period of 36 months. It is one of the largest funds to launch so far this year. And Lone Star is one of the mega-fund elites in the market.

Lone Star Real Estate Fund III closed in 2013 with $7 billion in equity commitments and is in its investment period.

And Lone Star Real Estate Fund II closed in 2011 with $5.5 billion in equity commitments. Fund II invested the majority of its equity capital in the Americas and Europe (more than 50 percent and 40 percent, respectively) and the remainder in Japan. Investments primarily consisted of commercial real estate loan portfolios, direct real estate, CMBS and a commercial real estate co