Private equity real estate investor Oregon State Treasury increases allocation to Lone Star funds taking its holdings to USD 1.37 billion

by Stuart Taylor

  • 07 Oct 2009
  • PE
  • RE

Oregon State Treasury has committed USD 400 million across two Lone Star vehicles on behalf of Oregon Public Employees Retirement Fund (OPERF). OPERF has over committed to its opportunistic portfolio by 5%, with 35% of its real estate portfolio allocated to these funds. However, Oregon still decided to commit USD 300 million to Lone Star Real Estate Fund II. The private equity real estate fund commits to opportunistic, distressed and debt markets. Oregon felt that Lone Star’s track record in the distressed and debt markets made it a particularly attractive prospect in the current economic climate. The pension fund also invested USD 100 million in Lone Star Fund VII. This means that OPERF has committed to all seven funds in the Lone Star Fund series and both vehicles of the Lone Star Real Estate series. Lone Star therefore has the biggest share of OPERF’s real estate portfolio, with a 16.5% holding of its property assets. The pension fund has committed USD 1.37 billion to Lone Star funds since 1995, USD 162 million of which is in unfunded commitments.

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