Angelo Gordon almost doubles distressed fund target to close at $1.8bn

The vehicle will aim to generate strong risk-adjusted returns regardless of broader market conditions.

New York-headquartered fund manager Angelo Gordon has closed its first credit solutions fund at almost double its target on $1.8 billion.

The AG Credit Solutions Fund, which will focus on distressed and special situations credit, had an initial target of $1 billion.

Angelo Gordon said it received investment from existing clients and new investors globally. Both Michigan Retirement Systems and San Mateo County Employees’ Retirement Association are known to have committed to the fund based on public meeting minutes.

The firm declined to disclose the fund’s lifespan or investment period but it is thought it has already begun investing. No IRR target has been disclosed, but a Bloomberg report suggested the vehicle is aiming to generate annual returns of 14 percent.

The fund will seek to employ an “all-weather” investment approach to generate returns for investors regardless of the market environment. It will seek to align with companies and create customised financing to help resolve liquidity and capital structure situations.

The fund’s portfolio manager and global head of distressed and corporate special situations at Angelo Gordon, Ryan Mollett, said: “Our solutions-based, partnership approach is differentiated, and we are committed to using our capital, creativity and scale to help companies and drive performance for our investors.”

Angelo Gordon’s credit business has almost $25 billion of assets under management across a variety of strategies. The firm has been investing in distressed and special situations credit since it was founded in 1988.