Lone Star’s first home mortgage fund beats $1 bln target

Firm: Lone Star Funds

Fund: Lone Star Residential Mortgage Fund I

Target: $1 bln

Amount raised: $1.34 bln

Transactions targeted by Lone Star Residential Mortgage Fund I include investments in newly originated performing U.S. single family residential mortgages and related investments, the Texas firm said on its website. Overall, Caliber Home often works with U.S. home buyers that may be unable to obtain credit from traditional lenders, according to a source.

Lone Star Residential Mortgage Fund I held a first and final close in December, exceeding its hard cap of $1.25 billion. A Form D filing for the fund lists the total amount raised at $1.34 billion.

Lone Star listed a date of first sale of Dec. 14, 2014, on the fund’s Form D filing, with a minimum investment of $4.3 million. The Form D said the fund drew backing from 11 investors.

It’s the first fund closing for Lone Star since it wrapped up its flagship Lone Star Fund IX with $7.2 billion in July 2014.

Lone Star backs Caliber Home Loans, an Irving, Texas-based lender that acquired Cobalt Mortgage in 2014 to create one of the largest independent mortgage companies in the U.S. In 2013, the company changed its name to Caliber Home Loans after it merged with Vericrest Financial Inc for an undisclosed sum.

A spokeswoman for Caliber declined to comment. Lone Star did not return emails seeking comment.

(This story has been updated to include additional information about fundraising for Lone Star Residential Mortgage Fund I.)