Lone Star Funds closed its sixth real estate fund, Lone Star Real Estate Fund VI with about $4.7 billion in total capital, including expected co-investments from other Lone Star entities, a news release said.
The latest fund includes uncalled capital from the prior fund in the series, Lone Star Real Estate Fund V, which closed in 2016 with $5.9 billion in total commitments, according to sources familiar with the situation. Lone Star executives offered limited partners in Fund V the ability to roll their uncalled capital into the new fund; those LPs were given a lower management fee, the sources said. The percentage of LPs that rolled over their uncalled commitments into the new fund could not be learned.
Lone Star spokeswoman Christina Pretto declined to comment.
Investors in the current fund include the $52.7 billion Maryland State Retirement & Pension System, Baltimore; $51.1 billion Illinois Teachers' Retirement System, Springfield; and $12.2 billion South Dakota Investment Council, Pierre. Maryland and South Dakota also invested in the prior fund.
Separately, Clearlake Capital Group closed Clearlake Opportunities Partners II at its $1.4 billion hard cap, a news release said.
The capital commitments include a more than 3% general partner commitment, said sources familiar with the situation. The fund will make non-control investments in middle-market companies in the software and technology-enabled services; industrials and energy; and consumer sectors.
It is more than double the size of the first fund in the series, the $550 million Clearlake Opportunities Partners I, which closed in 2015.
Investors in the fund include the $119.4 billion New York State Teachers' Retirement System, Albany; $42.7 billion Illinois Municipal Retirement Fund, Oak Brook; and the Rhode Island State Investment Commission, Providence, which oversees the $8.1 billion Rhode Island Employees' Retirement System, Providence.