Lone Star Funds Completes Successful Fundraising for LSREF VII

Lone Star Funds Closes Fundraising for LSREF VII

Lone Star Funds has completed the final close of Lone Star Real Estate Fund VII, L.P. (LSREF VII). The fund raised approximately $2.7 billion in total capital. With that commitment in place, the firm adds meaningful capacity to pursue opportunities in commercial real estate while markets continue to reset.

Investing Through Shifting Markets

As conditions in real estate evolve, LSREF VII will target deep-value and special situation investments across Europe, North America, and Japan. Chief Executive Officer Donald Quintin underscored the firm’s nearly 30 years in commercial real estate, noting that experience shapes how the team evaluates risk, underwrites assets, and moves decisively when pricing dislocations appear. He also acknowledged the support of long-standing partners, whose backing helped bring this fundraising to a successful close.

Where LSREF VII Will Focus

The fund’s mandate is opportunistic and value-add. That means it may invest directly in commercial properties, acquire debt portfolios tied to real estate, and back operating companies connected to the sector. The approach is deliberately flexible so the team can lean into what the market offers—whether that’s recapitalizations, asset repositionings, or buying loans at a discount—while staying disciplined on underwriting and execution.

Track Record and Recent Closings

Since launching its first fund in 1995, Lone Star has formed 25 private equity funds that together have received about $95 billion in capital commitments. The predecessor vehicle, Lone Star Real Estate Fund VI, L.P., reached its final close in June 2019 with approximately $4.6 billion in commitments. More recently, the firm closed Lone Star Fund XII, L.P. in June 2024, with capital commitments totaling roughly $5.3 billion. The continuity across these programs reflects a consistent strategy and a base of investors that has grown alongside the platform.

About Lone Star Funds

Lone Star is a global private equity firm investing across corporate equity, credit, and real estate. Its funds are organized into three series: the Opportunity Fund series, the Commercial Real Estate Fund series, and the U.S. Residential Mortgage Fund series. Limited partners include large institutional investors—such as pension plans and sovereign wealth funds—as well as foundations that support causes including medical research and education. For more information, visit www.lonestarfunds.com.

Frequently Asked Questions

What is LSREF VII and how much did it raise?

LSREF VII is Lone Star Funds’ latest commercial real estate vehicle. It completed fundraising with approximately $2.7 billion in total capital commitments.

Which markets will LSREF VII target?

The fund will focus on opportunities in Europe, North America, and Japan, with an emphasis on deep-value and special situations that can benefit from active management and careful underwriting.

What types of investments can the fund make?

LSREF VII can invest in commercial properties, purchase real estate-related debt portfolios, and invest in operating companies connected to the commercial real estate ecosystem. The strategy is opportunistic and value-add by design.

What’s Lone Star’s track record in raising capital?

Since 1995, Lone Star has organized 25 private equity funds, securing about $95 billion in capital commitments. Notably, Lone Star Real Estate Fund VI, L.P. closed in June 2019 with around $4.6 billion, and Lone Star Fund XII, L.P. closed in June 2024 with roughly $5.3 billion.

How is Lone Star structured across its fund families?

The firm manages three series: the Opportunity Fund series, the Commercial Real Estate Fund series, and the U.S. Residential Mortgage Fund series. Investors include pension funds, sovereign wealth funds, and foundations supporting areas such as medical research and education.

About The Author

Olivia Taylor here, a 26-year-old writer and financial advisor. After earning a degree in finance, I worked in the sector for years. I've always loved numbers and had a talent for simplifying difficult financial ideas so that anyone could understand. I wrote my first book because of this passion; it helps readers take charge of their financial futures by fusing real-life stories with useful financial advice.

Whether they are just beginning their careers, preparing for significant life events, or seeking to invest wisely, my goal with my writing is to enable people to make educated financial decisions. The foundation of my work is the conviction that security and freedom of the individual are largely determined by financial literacy. To further financial education, I run workshops and frequently write for financial blogs in addition to my books.

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