(Reuters) – Real-estate private-equity giant Lone Star Funds is cutting some of its fees as it tries to raise $20 billion to buy pools of troubled mortgages and other kinds of distressed debt, the Wall Street Journal reported on its website on Tuesday.
Lone Star, led by John Grayken, reduced the minimum management fee it will charge in the two new funds to 0.35 percent from 0.75 percent in its previous fund, in a move to win new commitments from big investors like the state of Oregon, the paper said.
Oregon’s board, which oversees $51 billion public-employee pension fund’s investments, recently agreed to put $400 million into two new Lone Star funds after the firm agreed to reduce its fees, the Journal said.
Lone Star could not be immediately reached for comment. (Reporting by Supantha Mukherjee in Bangalore; Editing by Valerie Lee)