Angelo Gordon launched the effort earlier this year, and so far has commitments from 49 investors. LA Fire committed $35 million, while CalSTRS committed $100 million. Fresno County Employees’ Retirement Association has invested $30 million with the fund, Buyouts magazine reported.
The also firm announced an investment today, agreeing to purchase Crunch Fitness as it exits bankruptcy in September. Angelo Gordon submitted a credit-bid worth $40 million for the gym operator. That deal brought about a lawsuit from the company’s other lenders which accuses Crunch Fitness of hiding its “insider sale” to Angelo Gordon. The deal announced today includes an agreement to shield Angelo Gordon from the lawsuits in exchange for the firm waiving its rights to recover around $5 million in money transferred out of the company’s estate.
Kirk Wickman manages the distressed debt fund, alongside John Angelo and Michael Gordon.
(This post has been updated to reflect the Fresno County’s decision to invest in the firm.)