T
he private equity giant Lone Star Funds, led by CEO Donald Quintin, has secured $2.7 billion in capital for its latest fund, the Lone Star Real Estate Fund VII LP, which will focus on deep-value and special situation investment opportunities across Europe, North America, and Japan. This is the firm's second fund to close since Quintin took over as CEO in April. The first fund, which closed in June, was a $5.3 billion fund focusing on distressed assets.

    Lone Star has been investing in the commercial real estate sector for nearly three decades and believes that the current environment will play to its strengths as a disciplined and flexible opportunistic investor. The fund's size reflects the broader challenges facing commercial real estate, including lower demand for office space and high interest rates. Twenty percent of the nation's $4.7 trillion in commercial mortgage debt is due to mature by the end of this year, which is likely to lead to distress in the market.

    Lone Star had $36 billion in assets under management at the end of last year and has organized 25 private equity funds with commitments totaling $95 billion. The firm's investors include pension funds, sovereign wealth funds, and philanthropic foundations, many of which support education and medical research.