TPG Angelo Gordon has raised almost $2.5bn (€2.2bn) for its latest European value-add real estate strategy.
The fund manager said it secured $2.27bn in capital commitments for TPG AG Europe Realty Fund IV and an additional $214m in co-invest capital to invest alongside the fund.
The previous fund in the series, Fund III, closed in July 2020 after securing over $1.5bn in capital commitments, excluding co-investment capital.
TPG Angelo Gordon said Fund IV’s fundraising was backed by limited partners such as public and corporate pensions, sovereign wealth funds and endowments, with nearly 60% of Fund III investors reinvesting.
Investors from the Middle East and Asia-Pacific contributed 53% of Fund IV’s committed capital, while North American investors added 39% and European investors accounted for 8%.
As previously reported, Los Angeles County Employees Retirement Association approved a $180m commitment to Fund IV, and the Minnesota Board of Investment was considering made a $125m commitment to the European value-add property fund.
TPG Angelo Gordon said that Fund IV has deployed approximately 20% of its capital to date, including investments in single-family and multi-family residential properties in the Netherlands, a 72,000sqm industrial redevelopment site in Paris and the ongoing expansion of a UK industrial outdoor storage portfolio.
Anuj Mittal, head of TPG Angelo Gordon’s Europe real estate, said: “We are pleased to have successfully closed Fund IV, our largest dedicated European real estate fund to date. We began investing in Europe after the [global financial crisis], and this fundraise reflects strong investor confidence in our strategy, track record, team and the compelling investment opportunities we are sourcing through our proprietary networks.
“We believe this market environment is exactly where we thrive – valuation stress and distress along with structural shifts in supply and demand across asset classes is already generating a very compelling set of opportunities for investors with capital and experience.”
Tom Rowley, co-portfolio manager of TPG Angelo Gordon’s European real estate funds, said: “Our long-term and mutually beneficial relationships with nearly 50 local operating partners provide us a distinct sourcing advantage in a fragmented European market.
“Our established network enables us to generate attractive off-market and proprietary opportunities, which are only multiplying under the dual pressures of normalising rates and broader economic uncertainty. We look forward to executing on the meaningful opportunities ahead.”
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