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Angelo Gordon raises $850m Asia oppo fund – Exclusive

The New York-based alternative investment firm has reached a final closing of its third, and largest, Asia opportunistic real estate vehicle.

Angelo, Gordon has wrapped up fundraising for its third Asia opportunistic real estate vehicle, raising approximately $850 million in equity.

With the final closing, the New York-based alternative investment firm has exceeded the fund’s original fundraising target by almost $100 million.

AG Asia Realty Fund III was brought to market in the first quarter of 2015. Investors that have committed capital to the vehicle are a mix of US and other institutional investors. These include the $88 billion US public pension North Carolina State Treasury that has committed $100 million, according to PERE data, the Minnesota State Board of Investment; and the Hawaii Employees’ Retirement System.

“We are grateful for the strong support we received from new and existing limited partners to close our third fund. We continue to see highly compelling real estate investment opportunities in Japan, Korea and Greater China and believe our deep, longstanding relationships with our local operating partners positions us well to generate attractive returns,” commented Wilson Leung, head of Asia real estate at Angelo, Gordon.

The capital raised via AG Asia Realty Fund III is being invested in value-add turnaround and development opportunities with a focus on Japan, South Korea, Hong Kong and China. So far, around 25 percent to 30 percent of the capital has been invested in a total of ten investments in these markets. The minimum ticket size of investments is understood to be around $10 million.

In January this year, PERE reported Angelo, Gordon’s acquisition of two properties in Hong Kong for a total of HK$818 million ($105 million; €100 million) via the fund. One was a nine-storey office building located in the fringes of the Central business district, and the second was a retail property in Hong Kong Island West.

The firm is targeting opportunistic returns of around 20 percent from the fund investments. 

Angelo, Gordon’s latest fund is the biggest in the series of Asia opportunistic vehicles. The predecessor fund, AG Asia Realty Fund II closed on $616 million and is now fully invested. AG Asia Realty Fund I raised $526 million.

The firm currently manages approximately $26 billion in assets globally.