In a statement, Angelo Gordon said the fund exceeded its target of $1 billion, with strong backing from existing investors and new global institutional investors. AG Asia Realty Fund IV also exceeded its predecessor fund, which raised $850 million in capital commitments in December 2016.
AG Asia Realty Fund II and AG Asia Realty Fund I raised $616 million and at $526 million, respectively.
Angelo Gordon’s billion-dollar fund comes as global investors now look into opportunities in the Asia Pacific region to search for higher yields as markets at home continue to be sluggish. Several private equity firms this year are also in the market to raise more than $1 billion in Asia-focused real estate fund.
Among them is KKR & Co, which is reportedly raising its first Asia-focused real estate fund at $1.5 billion. PE firm GreenOak Real Estate is also seeking to raise as much as $1 billion for its third Asia-focused real estate fund – GreenOak Asia III.
Hong Kong-based private equity firm PAG is also raising over $2 billon for its eighth opportunities real estate fund, according to sources.
In June, global PE firm Warburg Pincus made the final close for its China-Southeast Asia-focused PE fund at $4.25 billion. The new fund will focus on investing across five sectors, including real estate.
Angelo Gordon said the new fund will seek to identify and capitalise on value-add turnaround and development opportunities across major markets in Asia, with a strong emphasis on Japan, China, South Korea, and Hong Kong.
“The Fund will aim to purchase sub-performing assets, which often require significant renovation, repositioning, and lease-up to stabilize, or pursue select development opportunities,” the firm said.
Headquartered in New York, Angelo Gordon is a privately-held registered investment advisor dedicated to alternative investing. The firm was founded in 1988 and currently manages approximately $25 billion. It has been investing on behalf of pension funds, corporations, endowments, foundations, sovereign wealth funds, and individuals.
Since 2005, Angelo Gordon has committed over $2.5 billion of equity in 83 real estate transactions in Asia. It recent transactions include the purchase of over $500 million of logistics properties, totaling more than 2.7 million square feet of space, in Greater Tokyo and Osaka – the two largest logistics markets in Japan.
It also acquired a 600,000 square foot sale-leaseback office property in Beijing with one of China’s largest e-commerce companies and sold two centrally located residential land sites in Seoul for approximately $300 million.
“We continue to see a wealth of compelling investment opportunities in Asia, and the depth of our experience and strength of our network of local operating partners make us well-positioned to capitalize on those opportunities, improve asset performance, and drive value for our investors,” said Wilson Leung, Angelo Gordon’s head of Asia Real Estate.
Angelo Gordon has over 515 employees, including nearly 210 investment professionals, and is headquartered in New York, with associated offices elsewhere in the US, Europe, and Asia.