New York-based alternative investment manager Angelo, Gordon & Co has closed its second European realty fund, AG Europe Realty Fund II at $843 mln (€704 mln) in equity commitments, exceeding the fund’s $750 mln target.
According to the US firm, the fund will seek to identify complex and off-market investment opportunities with a focus on UK and Western Europe sub-performing distressed debt, office, retail, hotel, industrial and residential assets.
It received strong backing from existing Angelo Gordon investors, and also welcomed a number of new global institutional investors. The fund was oversubscribed.
'We are pleased with the support we received from new and existing investors for our second European realty fund,' said Adam Schwartz, co-CIO and head of real estate at Angelo Gordon. 'European real estate is a market we monitored for nearly a decade before we began investing in 2009.'
'The real estate sector in Western Europe and the UK is still experiencing substantial levels of distress and dislocation,' commented Anuj Mittal, co-portfolio manager of European real estate at Angelo Gordon.
'We believe our focus on buying transitional assets in geographies with strong fundamentals has proven successful and by using our large network of local partners, we are well-positioned to select the best risk-adjusted return opportunities in the region.'
Angelo Gordon’s first AG Europe Realty Fund closed in 2014 with approximately $570 mln in commitments. Since 2009, the firm has invested in approximately $2 bn of assets across 42 transactions in Europe.