The $73 billion alternative investment management firm Angelo Gordon raised $1 billion of equity commitments for its AG Asset Based Credit Fund, exceeding the firm’s original $800 million target.
The new fund invests in asset-based specialty private credit globally across collateral types within consumer, real asset and other specialty lending markets. The aim is to identify and fill material “financing gaps” by providing flexible capital solutions to assets or borrowers that do not fit into traditional lending categories.
“Today’s market conditions, headlined by rising rates, widening spreads and a pullback by banks, are paving the way for a significant ongoing dislocation within the broader specialty finance markets and the need for capital across asset types,” said T.J. Durkin, head of structured credit and portfolio manager of the fund. “We believe our creative, partnership-based approach, well-established team, and deep structured credit investment capabilities best position us to help companies with strong upside potential receive the financing they require, while driving performance for our investors.”
Additionally, Angelo Gordon said it has also created fund-backed rated notes to the fund, which offers insurance carriers access to the strategy in a capital efficient format. The fund offering further grows the New York-based firms credit program that now totals $55 billion across corporate credit, lending and structured credit strategies.
The latest fund close follows the final close of over $1.3 billion Angelo Gordon’s second public market dislocation fund earlier this year as the firm expanded its distressed and corporate special situations platform. The AG CSF2A (Annex) Dislocation Fund was raised over the course of only seven months and follows the successful close of the AG Credit Solutions Fund II last May.
“This fundraise furthers Angelo Gordon’s commitment to strategically scaling our all-weather credit platform with diversified strategies across the liquidity spectrum,” said Josh Baumgarten, co-CEO, co-CIO and head of credit at Angelo Gordon. “We are grateful for the strong support we received from new and existing investors and look forward to providing them with another way to gain exposure to the tremendous opportunities that exist across private credit markets globally.”
