The mid-market direct lending group at Angelo, Gordon & Co. is close to finishing up fundraising for its debut fund, PDI can reveal.
The Chicago-based Twin Brook Capital Partners subsidiary recently held a $400 million fourth close on the fund, which is targeting $500 million overall, according to sources familiar with the fund.
The vehicle should be set to hold a final close in early January at about $100 million above target, as the manager has seen more interest from LPs, PDI understands.
Angelo Gordon declined to comment.
Angelo Gordon began fundraising for the fund in the beginning of the year, shortly after hiring Trevor Clark (pictured) and Chris Williams to lead the new mid-market lending platform. Clark and Williams were previously founders of another Chicago-based lender, Madison Capital Funding, before leaving that firm in the fall of 2013.
The firm is planning to lever the fund at a little over 1:1. Once the equity capital and bank leverage are in place, Twin Brook expects to have about $1.5 billion in total capital for lending. Sources told PDI that AG has already lined up credit lines with two banks and expects to have one more agreement finalized soon.
Twin Brook has already been making loans from the new fund, with about $300 million invested across 13 deals. The firm usually works on sponsor-backed transactions with companies that typically have EBITDA between $3 million and $50 million.
The firm has also been rapidly adding staff, with many of the new employees being Clark and Williams’ former colleagues from Madison Capital. The division opened a new office at 300 South Wacker Drive in Chicago in September.
New York-headquartered Angelo Gordon has about $27 billion in assets under management across a variety of private equity, real estate and distressed debt strategies. The firm is also currently in the market with several other credit products. AG is raising $1 billion towards an energy credit fund and $750 million for a commercial real estate debt fund, as PDI previously reported.
Seeing as AG’s various credit interests have increased over the years, the firm also appointed a head of credit recently. Joshua Baumgarten, who was previously a senior managing director at The Blackstone Group, is currently on gardening leave and is expected to join AG at the beginning of next year.