Starwood Capital has now raised $5.6bn (€4.7bn) for its latest distressed property fund, according to the Teachers’ Retirement System (TRS) of Oklahoma.
Oklahoma Teachers has approved a $150m commitment to the Starwood Distressed Opportunity Fund XII, a fund it said is expected to raise $7.5bn at a planned final close in the first quarter of next year.
Oklahoma Teachers is expected to receive a $625,000 fee discount for its $150m commitment as a result of a waiver being offered to investors who qualify to join the fund by the end of this month.
As previously reported, the global real estate fund was said to be planning to raise up to $8bn directly into the fund and $3bn for a sidecar vehicle to invest alongside the fund. The fund intends to have most of its capital invested in the US and Europe.
Fund XII’s projected net internal rate of returns is in the range of 14% to 16%.
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