Angelo Gordon has secured $175m of investment from two US pension funds into its new fund targeting European value-add real estate.
The Minnesota State Board of Investment is to invest $75m, subject to board approval, and the Pennsylvania Public School Employees’ Retirement System is to put in $100m into AG Europe Realty Fund III.
PSERS reported in a board meeting document from July that Angelo Gordon is aiming to raise $1.2bn for the fund, which is expected to have a first close next month.
The document added that Angelo Gordon would itself invest at least 3% of the commitments, up to $15m.
The fund is expected to target between 30 and 45 equity investments in a range of $15m to $180m targeting properties valued between $33m and $400m across Western Europe, including the UK.
It will focus on underperforming or distressed assets and debt in the office, retail, residential, industrial, and hotel sectors, but may also look at alternative asset classes such as student housing, senior housing, self-storage, and land.
To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
