Lone Star has raised $2.99bn (€2.58bn) in a first close for its latest global real estate fund, according to a source that tracks fundraising.

The first close for Lone Star Fund XI was held earlier this month and Lone Star hopes to eventually raise $6bn.

The fund will invest in distressed situations and debt opportunities on a global basis, according to sources.

One of the more recent investors to back the fund is the New Mexico Educational Retirement Board, which confirmed it had approved a $50m commitment as part of its opportunistic investment strategy.

New Mexico Educational Retirement Board has invested in Lone Star Funds VII, VIII and X and Lone Star Real Estate Funds II and V.

The latest commitment is likely the pension fund’s last real estate commitment for 2018. It is likely to consider one new commitment for an infrastructure fund before the end of the year.