Angelo Gordon has raised over $1.5bn (€1.33bn) for its latest European value-add real estate fund.
The manager said the AG Europe Realty Fund III exceeded its $1.2bn target to reach its hard cap target with backing from existing Angelo Gordon investors and a number of new global institutional investors.
As previously reported, the Pennsylvania Public School Employees’ Retirement System, the Minnesota State Board of Investment and the Los Angeles Water and Power Employees’ Retirement Plan each made a commitment to the fund.
The predecessor AG Europe Realty Fund II fund raised $843m in May 2018, exceeding its $750m target.
Angelo Gordon said the fund will target assets, across all property types, that are located in the UK and major markets in Western Europe and the Nordics.
Adam Schwartz, co-CIO and head of real estate at Angelo Gordon, said: “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, said: “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.”
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