Angelo Gordon on Monday announced the final closing of its asset-based private credit fund with more than $1 billion of equity commitments, exceeding the alternative investment firm’s $800 million target.
The vehicle focuses on asset-based private credit investments in a variety of trade formats across a broad array of collateral types within consumer, real asset and other specialty lending markets, Manhattan-based Angelo Gordon said in a release.
The company, which is in the process of being acquired by private equity giant TPG, aims for AG Asset Based Credit Fund to fill financing gaps by providing flexible capital solutions to assets or borrowers that don’t fit into traditional lending categories.
“Today’s market conditions, headlined by rising rates, widening spreads and a pullback by banks, are paving the way for a significant ongoing dislocation within the broader specialty finance markets and the need for capital across asset types,” said portfolio manager TJ Durkin.
Easy Access for Insurers
Angelo Gordon, which has $55 billion in credit assets under management, said the fund received support from existing clients and new institutional investors. The firm touted its experience in fund-backed rated notes, enabling US insurers to access the new strategy in a capital-efficient format.
The fund’s final closing follows that of Angelo Gordon’s second public-market dislocation fund announced in March. The $1.3 billion strategy seeks to capitalise on situational market volatility and stress by investing in public debt securities whose prices have dislocated from long-term fundamentals.
Josh Baumgarten, co-CEO and head of credit at Angelo Gordon, said the latest fundraising would further the firm’s commitment to strategically scaling an “all-weather credit platform” with diversified strategies across the liquidity spectrum.
“We are grateful for the strong support we received from new and existing investors and look forward to providing them with another way to gain exposure to the tremendous opportunities that exist across private credit markets globally,” Baumgarten said.
TPG Buyout Ahead
In May, Angelo Gordon announced the planned acquisition by TPG in a cash and equity transaction valued at $2.7 billion.
The deal is aimed at expanding TPG’s business in real estate and debt financing by taking on Angelo Gordon’s 650 employees across 12 offices in the US, Europe and Asia. The two private equity firms had $208 billion in combined assets under management at the end of 2022.
Angelo Gordon’s real estate platform manages $18 billion in dedicated value-add real estate strategies. The firm last December teamed with Wang On Properties to buy the Pentahotel Hong Kong from New World Development for HK$2 billion ($260 million), aiming to renovate and rebrand the 32-storey Kowloon building.
In 2019, an Angelo Gordon joint venture with the Chellaram family of local shipping fame sold a retail podium in Hong Kong’s Tseung Kwan O area to Wang On for HK$780 million. In 2021, a joint venture of Wang On and Angelo Gordon acquired an eight-storey carpark podium at Jumbo Court in Aberdeen for HK$410.3 million.