Angelo, Gordon & Co (AG), the New York-based alternative assets management firm, has held a final closing for its second Asia private equity real estate fund.
Having reduced its capital raising target from $1 billion at the time of launch in early 2009 to between $550 million and $650 million this year, the firm has now met its revised goal.
According to a report by Bloomberg, the AG Asia Realty Fund II will invest up to $800 million of equity, which includes equity from AG’s own resources. In a telephone interview, Keith Barket, senior managing director, said with leverage AG could have $1.6 billion to spend.
The fund is expected to target China residential, industrial and retail development and Japanese assets, predominantly Tokyo offices.
Led by Asia head Wilson Leung, AG will invest the capital with a team of approximately 15 investment staff, the majority of which are based in Hong Kong. According to Bloomberg’s report, AG has already invested $70 million in a Tokyo office.
Barket said: “We’re definitely looking at assets that foreign banks and opportunity funds are selling – and there are a lot of them.”
Investors in the fund, which is targeting IRRs of 20 percent, include the Oregon Public Employees Retirement System, which committed $100 million.
AG closed its debut Asia fund, AG Asia Realty Fund I, on $526 million in 2006. The vehicle is not fully invested and, according to the Oregon pension fund, is projecting are turn of 13 percent IRR and 1.5x equity.