Angelo, Gordon & Co. raised more than $1.5 billion in commitments for its latest European real estate fund, exceeding the target and hitting the fund's hard cap.
The $35 billion alternative investment firm, which focuses on credit and real estate, exceeded the $1.2 billion target for the AG Europe Realty Fund III, a news release said.
The fund will invest in off-market opportunities, focusing on subperforming assets across the spectrum of opportunities, including those with "attractive in-place cash flow" to distressed assets that need stabilizing through capital restructuring and asset repositioning. Investments will cover all property types in the U.K. and major markets in Western Europe and Nordic countries.
"Significant levels of dislocation and distress in the real estate sector in the U.K. and western Europe persist, with political uncertainty, weak banks, and sluggish economies contributing to the emergence of new pockets of stress," said Anuj Mittal, co-portfolio manager of European real estate, in the news release. "Additionally, we believe COVID-19 will likely lead to a new set of distress."
Investors include the $31.6 billion Texas Permanent School Fund, Austin, which this month committed $75 million to the fund; and the $14.1 billion Los Angeles Water & Power Employees' Retirement Plan, which this month disclosed a $60 million commitment to the fund and a $15 million commitment on behalf of its retiree health benefit fund.
The predecessor fund, the AG Europe Realty Fund II, closed in 2018 at more than $840 million.
