A source told Bloomberg that Lone Star Funds had closed its Lone Star Real Estate Fund III with capital commitments of USD 6.6 billion. According to the source, the demand for the commercial real estate debt and equity fund was high. In the final round, the Dallas-based company was only able to accept a third of the pledged investor amounts. The second and final fundraising phase was capped at USD 600 million. The person spoke on the condition of anonymity as since the details were not to be made public.
The source also revealed that the pledges given by Lone Star Founder and Chairman John Grayken and partners as well Hudson Advisors' employees brought to total proceeds for Fund III to USD 7.1 billion.
Alternative assets research firm Preqin said Lone Star's third fund was the largest raised by a private equity firm for worldwide property investments. A Bloomberg report said Lone Star had given returns of over 20% in the past twenty years. It has also never had a losing fund. As a result, it has lured investors to keep on investing with the company.
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