Angelo Gordon racks up over $1.5bn for third European real estate fund

Angelo Gordon has raised over $1.5 billion for its third European real estate fund, beating its $1.2 billion target.

Angelo Gordon has raised over $1.5 billion for its third European real estate fund, beating its $1.2 billion target. The firm’s previous European real estate fund closed in 2018 at over $840 million.

PRESS RELEASE

NEW YORK, NY – July 2, 2020 – Angelo, Gordon & Co., L.P. (“Angelo Gordon” or the “Firm”), a $35 billion alternative investment firm focused on credit and real estate investing, announced today that it has raised over $1.5 billion in equity commitments for its most recent European real estate fund, AG Europe Realty Fund III (the “Fund”), exceeding the Fund’s $1.2 billion target and hitting the Fund’s 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 stabilize. 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,” said 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 added, “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 capitalize 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 $840 million. Since 2009, the Firm has purchased more than 75 real estate transactions in Europe totaling over $4 billion.

ABOUT ANGELO, GORDON & CO., L.P.
Angelo, Gordon & Co., L.P. (“Angelo Gordon”) is a privately held limited partnership founded in November 1988. The Firm currently manages approximately $35 billion with a primary focus on credit and real estate strategies. Angelo Gordon has over 500 employees, including more than 200 investment professionals, and is headquartered in New York, with associated offices elsewhere in the U.S., Europe, and Asia. For more information, visit www.angelogordon.com.