Angelo Gordon raises over USD1.5bn for most recent European real estate fund

Angelo, Gordon & Co, a USD35 billion alternative investment firm focused on credit and real estate investing, has raised over USD1.5 billion in equity commitments for its most recent European real estate fund, AG Europe Realty Fund III, exceeding the Fund’s USD1.2 billion target and hitting its hard cap.

Consistent with Angelo Gordon’s approach to global real estate investing, the Fund will seek to identify off-market investment opportunities with a focus on sub-performing assets along the entire value-add spectrum, from those with attractive in-place cash flow to distressed assets that require significant capital restructuring and asset repositioning to stabilise. AG Europe Realty Fund III will target assets, across all property types, that are located in the UK and major markets in Western Europe and the Nordics.

The Fund received strong backing from existing Angelo Gordon investors and welcomed a number of new global institutional investors.

“We’d like to thank our new and returning investors for their confidence and support of our strategy, which enabled us to hit this Fund’s hard cap,” says Adam Schwartz, Co-CIO and Head of Real Estate at Angelo Gordon. “Our limited partners’ robust response speaks to the talent of our experienced team and depth of our industry expertise, which paired with our strong network of trusted operating partners, create a distinctive edge when it comes to deal sourcing, improving asset performance, and value creation.”

Co-Portfolio Manager of European Real Estate Anuj Mittal adds: “Significant levels of dislocation and distress in the real estate sector in the UK and Western Europe persist, with political uncertainty, weak banks, and sluggish economies contributing to the emergence of new pockets of stress. Additionally, we believe COVID-19 will likely lead to a new set of distress. Our focus has long been on buying transitional assets in geographies with strong fundamentals, and that strategy coupled with our network of more than 40 operating partners with deep local knowledge make us well-positioned to select and capitalise on the most compelling investment opportunities in the region.”

AG Europe Realty Fund III’s predecessor fund, AG Europe Realty Fund II, closed in 2018 at over USD840 million. Since 2009, the Firm has purchased more than 75 real estate transactions in Europe totalling over USD4 billion.