AG closes energy credit fund on $650m – exclusive

The firm’s Houston-based energy team has so far invested about 15-20% of the fund’s capital and is seeing more attractive energy opportunities start to materialise.  

Angelo, Gordon & Co. (AG) has finished fundraising for its AG Energy Credit Opportunities Fund closing on $650 million on Thursday, according to sources familiar with the firm.

The fund’s target was in the $600 million to $700 million range. Many energy investors in the past year or two have been raising energy credit funds and betting on a recovery in oil prices.

AG declined to comment.

Crude oil is trading at about $50 per barrel nowadays, up from a low of $20 in the beginning of the year, though still far off from the $100 peak in the end of 2014, before oil began its free fall.

As prices start to climb back up, AG and other investors are seeing better and bigger opportunities, say investors who play in this sector. Riverstone Holdings also closed an energy credit fund earlier this year on $500 million.

AG has invested about 15 percent to 20 percent of the fund’s capital so far, PDI understands. The vehicle targets direct lending to energy companies, distressed assets and other corporate credit. The Contra Costa County Employees Retirement Association is an investor in the fund, according to PDI Research & Analytics.

AG’s Houston-based energy credit team is led by Todd Dittmann, who assembled a team of energy credit professionals before moving to AG in 2013. The first fund the group launched within AG was the Angelo Gordon Energy Partners fund, which focused exclusively on direct lending.

The firm’s Chicago-based corporate direct lending subsidiary, Twin Brook Capital Partners, recently closed a $596 million mid-market lending fund as well. AG is also in the market with a commercial real estate debt fund that’s targeting $750 million.

The New York-headquartered alternative investment firm has about $26 billion in assets across private equity, distressed debt, real estate and hedge funds. John Angelo, one of the firm’s two founders, died in the beginning of this year, resulting in Michael Gordon taking over his responsibilities as chief executive. In addition to New York, Chicago and Houston, the firm has offices in Los Angeles and San Francisco in the US, as well as six international outposts across Europe and Asia.