Angelo Gordon holds close on $1.3bn public debt securities dislocation fund

The annex fund, which was raised in less than seven months, is an extension of a vehicle that was closed in April 2022.

Angelo Gordon has held a final close on $1.3 billion for its Annex Dislocation Fund 2. The fund, part of the manager’s distressed and special situations strategy, is an extension of the AG Credit Solutions Fund II, LP, which held a final close on $3.1 billion in April 2022.

The annex fund, which was launched in August 2022, seeks to capitalise on situational market volatility and stress by investing primarily in public debt securities whose prices have dislocated from long-term fundamentals, Angelo Gordon said in a news release. The fund is part of the New York-based manager’s $12 billion all-weather distressed and special situations platform.

The predecessor fund, AG Credit Solutions Fund II, was launched in September 2021, according to Private Debt Investor research. It is the flagship for the firm’s all-weather strategy.

The annex fund received strong support from existing investors of the flagship Credit Solutions strategy, as well as significant commitments from institutional and retail investors new to Angelo Gordon, the statement said. The fund was raised in an expedited time frame of less than seven months from the first to final closing, the manager said. The predecessor fund received commitments of $30 million from San Mateo County Employees’ Retirement Association and $9 million from San Jose Federated City Employees’ retirement system, per PDI research.

Ryan Mollett, Angelo Gordon’s global head of distressed and corporate special situations and portfolio manager of the fund, said in the statement: “The dramatic price moves over the past 12 months have led to significant dispersion in individual names and created a credit-picker’s market. This dynamic, combined with our credit solutions capabilities, makes us very excited to tactically take advantage of opportunities in the public market.”

Josh Baumgarten, co-CEO, co-CIO and head of credit at Angelo Gordon, added: “Our distressed and special situations platform continues to prove its ability to identify and execute on idiosyncratic opportunities in rapidly changing market environments. We are grateful for the support of our limited partners and appreciate their confidence in our execution.”

Angelo Gordon, an alternative investment firm founded in November 1988, manages approximately $53 billion of assets with a primary focus on credit and real estate strategies. Of the total, its credit business manages more than $37 billion invested across corporate credit, lending and structured credit strategies.