Angelo Gordon Asia Fund in Line for $100M From Minnesota Pension Manager

Angelo Gordon is closing in on a commitment of up to $100 million from a Minnesota state pension manager for the US private equity firm’s latest Asia real estate fund.

The Minnesota State Board of Investment, which manages retirement and other funds for government workers in the upper midwest US state, will consider the proposed commitment to AG Asia Realty Fund V at a meeting on Thursday, according to a public statement by the SBI.

The fund is the fifth in Angelo Gordon’s series of Asia opportunistic funds and follows the firm’s AG Asia Realty Fund IV, which reached a $1.3 billion hard cap in 2019.

In May 2018, the Minnesota SBI committed $100 million to AG Asia Realty Fund IV as part of $250 million earmarked for vehicles managed by Angelo Gordon.

Active in the Region

AG Asia Realty Fund IV targeted opportunities in Japan, South Korea, Hong Kong and mainland China. Angelo Gordon’s investments in Asia have included offices, shopping centres, residential projects and hotels.

In the closing days of 2022, the Manhattan-based firm teamed with Wang On Properties to purchase the Pentahotel Hong Kong from New World Development for HK$2 billion ($260 million). Under the terms of the deal, Angelo Gordon and HKEX-listed Wang On were to hold respective stakes in the 695-room Kowloon property of 65 and 35 percent.

Also in Hong Kong, Angelo Gordon joined forces with local apartment operator Weave Living last year to acquire the Grand City Hotel in Hong Kong Island’s Western district for HK$900 million.

Angelo Gordon’s other regional deals in the last 12 months include the S$790 million ($570 million) disposal of Singapore’s Bugis Junction Towers by a joint venture of the US firm and TCRE Partners.

Spreading the Wealth

In addition to its commitments to Angelo Gordon’s Asia strategies, the Minnesota SBI invested $100 million in Blackstone Real Estate Partners Asia III, according to a report by IPE Real Assets.

BREP Asia III, the private equity giant’s third opportunistic real estate fund focused on the region, has raised more than $8 billion in committed capital as the vehicle nears its $9 billion target.

The Minnesota SBI previously backed a $13 billion KKR private equity fund focused on Asia and a $2 billion Warburg Pincus China fund investing across multiple sectors, including real estate.