New York investment powerhouse Angelo, Gordon & Co. has raised over $2.75 billion for its most recent U.S. real estate fund.
The raise for AG Realty Value Fund X exceeded the $2.5 billion target set by the firm and marks its largest real estate fund to date.
“We are grateful for the confidence of our new and returning investors, whose support of our strategy enabled us to hit this Fund’s hard cap,” said Adam Schwartz.
“The overwhelmingly positive response from investors is a testament to the talent of our team, depth of our industry expertise, and strength of our network of local operating partners – all of which make us well positioned to identify and capitalize on the most attractive investment opportunities in the U.S. market.”
The new fund will target off-market investment opportunities with a focus on sub-performing or distressed office, multifamily, retail, residential, hotel, for-sale housing, senior housing, self-storage, and student housing assets, primarily located in the U.S.
The Fund may also invest up to 20 percent of its capital in Europe and Asia, regions in which Angelo Gordon has a strong presence and local investment teams.
AG Realty Value Fund X benefits from a flexible mandate that allows for pursuit of investments along the entire value-add spectrum, with risk profiles ranging from core-plus to opportunistic.
The Fund is led by the co-portfolio manager team that has managed Angelo Gordon’s last four U.S. real estate vehicles, which includes Co-CIO and Head of Real Estate Adam Schwartz and Co-Portfolio Manager of U.S. Real Estate Reid Liffmann, with assistance from Steve White, Head of Western U.S. Real Estate and Deputy Portfolio Manager, and Matt Jackson, who was recently promoted to the role of Deputy Portfolio Manager.
The Fund received strong backing from existing Angelo Gordon investors and welcomed a number of new global institutional investors.
Liffmann added, “For over 25 years, we have developed and maintained a distinctive value-add approach to investing in U.S. real estate, which is focused on mitigating cyclical risk, and does not rely on macro-thematic bets to generate returns. Our wealth of experience and strong operating partner relationships create a competitive advantage when it comes to deal sourcing and enable us to improve asset performance and create value for our investors.”
Since 1993, Angelo Gordon has committed over $8 billion of equity in over 400 real estate transactions in the U.S.
In the tri-state area alone the company has invested is a slew of high profile projects including Industry City and Chelsea Market, residential properties such as Carlton House, Printing House and Wonder Lofts, as well as Vornado’s 85 Tenth Avenue office building, where Google leases 240,000 s/f, and Brookfield’s Five Manhattan West.
Among its $33 billion in equity investments and managed assets are the Crunch gym chain, the Benihana Japanese restaurant group and the Tribune publishing conglomerate, owner of the New York Daily News.