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Angelo Gordon beats its target with $3.1bn close

The credit solutions fund is part of a platform that bills itself as 'all-weather distressed and special situations'.

Angelo Gordon has held a final close on $3.1 billion for its AG Credit Solutions Fund II, beating its target of $3 billion and taking seven months from the initial to the final close.

The fund is part of a series of vehicles raised in the past three years that reside on the firm’s $11 billion “all-weather distressed and special situations” platform, Angelo Gordon said in a news release. Like its predecessor, AG Credit Solutions Fund, the latest fund seeks to leverage the firm’s capital base and structuring expertise to partner with companies to create “customised financing solutions that can help resolve idiosyncratic liquidity and capital structure situations”, the firm said.

The latest vehicle, launched in September 2021, received “significant” support from current clients of Angelo Gordon and new institutional and retail investors globally. Although the firm didn’t identify its limited partners, San Jose Federated City Employees’ Retirement System committed $9 million and San Mateo County Employees’ Retirement Association committed $30 million, according to PDI data.

The predecessor fund closed in February 2020 on $1.8 billion, nearly double its initial target of $1 billion. Angelo Gordon also raised two CSF Annex Dislocations Funds during the first half of 2020, with a combined $1.2 billion of capital, to capitalise on price volatility and market stress. The firm said both of those funds were invested, fully monetised and returned capital and profits to investors within 18 months.

Angelo Gordon did not disclose additional details. But a source familiar with the matter said that approximately 20 percent of the capital in the latest fund had already been deployed. A Private Debt Investor story on the previous fund cited a Bloomberg report that suggested the initial vehicle was seeking to generate annual returns of 14 percent.

“Our ability to capitalise on both public and private investment opportunities in varying market environments, as demonstrated particularly over the past two years, has driven performance for our investors,” Ryan Mollett, global head of distressed and corporate special situations and portfolio manager of the fund, said.

“Clearly, our solutions-oriented partnerships approach and compelling outcomes have resonated with both companies and investors,” Josh Baumgarten, co-chief executive officer, co-chief investment officer and head of credit at Angelo Gordon, said.

Angelo Gordon is a privately held alternative investment firm that was founded in 1988. Headquartered in New York, the firm manages approximately $50 billion of assets, with a primary focus on credit and real estate strategies. The firm’s entire credit business manages $36 billion of assets and invests across corporate credit, lending and structured credit strategies.