The Real Deal New York

Angelo, Gordon & Co. raises $1.3B for latest real estate fund

Investment firm beats goal by $300M, will target sub-performing properties

December 10, 2015 02:00PM

575 Lexington Avenue

575 Lexington Avenue in Midtown

Angelo, Gordon & Co. raised $1.3 billion for its latest real estate fund, thus beating its fundraising goal by $300 million.

The Midtown-based investment firm’s fund Angelo Gordon Core Plus Realty Fund IV will look to target sub-performing property types across various asset classes with the goal of turning those assets around.

The company has already invested 15 percent of the capital raised to date – including $510 million on its acquisition of 575 Lexington Avenue in Midtown.

Angelo Gordon completed its acquisition of the 35-story, 739,000-square-foot office tower from Normandy Real Estate Partners in September, as The Real Deal reported.

The new fund has a net return target of 11 percent to 12 percent, with the majority of the capital to be allocated in major U.S. markets and minor allocations in Asia and Europe, according to financial publication PERE.

Limited partners in the fund include the New Mexico State Investment Council, the Pennsylvania Public Schools Employees’ Retirement System and the Texas Permanent School Fund.

Angelo Gordon currently manages approximately $27 billion in assets, according to the company’s website. [PERE]Rey Mashayekhi