Angelo, Gordon & Co. has held a final close for its fourth core-plus vehicle, Angelo Gordon Core Plus (AGCP) Realty Fund IV, raising a total of $1.3 billion, PERE has learned. The equity haul – which surpassed the original $1 billion target – marks the New York-based alternatives investment firm’s largest real estate equity fund to date. It raised $1 billion for the fund’s predecessor in 2011.
Angelo Gordon collected $314 million for the fund’s first close in October 2014, according to a filing with the US Securities and Exchange Commission (SEC). PERE understands that the final close occurred late last month. Limited partners in the fund included the Pennsylvania Public Schools Employees’ Retirement System, Texas Permanent School Fund and New Mexico State Investment Council (NMSIC), according to PERE Research & Analytics.
On behalf of AGCP IV, Angelo Gordon will pursue the acquisition and turnaround of sub-performing properties working with local joint venture operating partners across a range of property types. The vehicle will be focused on major US markets as well as have a small allocation to Asia and Europe.
The firm is said to have invested 15 percent of the fund’s capital to date. Among the fund investments was the purchase of a majority stake in 575 Lexington Avenue, a 745,000 square foot office tower in New York, for $510 million in September. AGCP IV has a net return target of 11 percent to 12 percent, according to minutes from the NMSIC August board meeting.
Angelo Gordon was one of the first private equity real estate firms to begin investing in core-plus real estate, launching its fund series in the strategy in 2002. Since then, other managers, including Rockpoint Group, The Blackstone Group and The Carlyle Group also have established their own core-plus platforms and have raised or are raising funds in the strategy.
The firm, which also invests in credit, private equity and multi-strategy, also currently is in the market with its latest opportunistic real estate fund, AG Realty Fund IX. According to SEC filings, that vehicle has attracted approximately $736 million in commitments to date.