Angelo, Gordon & Co. is back on the fundraising trail with a new real estate fund, having already held a first close for the value-added vehicle. Documents filed with the US Securities and Exchange Commission show that the New York-based alternatives investment firm has raised $130.15 million in equity for AG Net Lease Realty Fund III, which is said to be targeting $750 million in commitments. Representatives from Angelo Gordon declined to comment.
Like the previous funds in the series, Net Lease Realty Fund III will seek to purchase net leased corporate real estate properties in the US and overseas, with an emphasis on providing sale-leaseback financing to financial sponsors and non-investment grade companies.
The prior fund in this series, Net Lease Realty Fund II, ultimately closed on $560 million in commitments in 2010, while Fund I closed on $160 million in 2007. Angelo Gordon targeted returns of up to 17 percent through those two funds.
“Net lease is the logical marriage of Angelo Gordon's historical strength in leveraged credit and principal real estate investing,” said co-founder and chief executive officer John Angelo upon the closing of the firm’s first net lease fund. “Utilizing this platform, we can offer unique financing to sponsors and leveraged companies, while generating attractive risk-adjusted returns for our investors.”
This new vehicle follows the closing of two real estate funds by Angelo Gordon in 2012. Early last year, the firm closed on $1.27 billion for its latest opportunistic vehicle, AG Realty Fund VIII, and on $1.01 billion for its AG Core Plus Realty Fund III.