Key Takeaways
- • Angelo Gordon announced the final close of the AG Asset Based Credit Fund, L.P. with over $1 billion in equity commitments, exceeding its $800 million target.
- • The fund targets asset-based specialty private credit across consumer, real asset, and other specialty lending markets, seeking to fill "financing gaps" for assets or borrowers outside traditional lending categories.
- • Angelo Gordon applied its fund-backed rated notes experience to the fund, allowing U.S. insurance carriers to access the strategy in a capital-efficient format.
- • The close lifts the firm's credit assets under management to $55 billion and follows the AG CSF2A (Annex) Dislocation Fund, which closed in March 2023 with over $1.3 billion.
- • T.J. Durkin, Head of Structured Credit, cites rising rates, widening spreads and bank pullback as drivers of a significant ongoing dislocation in specialty finance.
Summary
Angelo Gordon, a privately held alternative investment firm focused on credit and real estate, announced the final close of the AG Asset Based Credit Fund, L.P. with over $1 billion of equity commitments, according to a Business Wire release dated July 18, 2023. The raise exceeded the fund's $800 million target. The firm said the fund received significant support from existing clients as well as new institutional investors attracted to its private credit track record.
The fund invests in asset-based specialty private credit across a range of trade formats and collateral types within consumer, real asset, and other specialty lending markets. The firm says it aims to identify and fill material "financing gaps" by providing flexible capital to assets or borrowers that do not fit traditional lending categories. The release also notes that Angelo Gordon applied its experience with fund-backed rated notes to the vehicle, giving U.S. insurance carriers a capital-efficient way to access the strategy.
T.J. Durkin, Head of Structured Credit and portfolio manager of the fund, said that rising rates, widening spreads and a pullback by banks are creating a significant, ongoing dislocation in specialty finance markets and a need for capital across asset types. Josh Baumgarten, co-CEO, co-CIO and Head of Credit, said the fundraise supports the firm's plan to scale its all-weather credit platform across the liquidity spectrum.
The fund expands Angelo Gordon's global credit platform, bringing its credit AUM to $55 billion across corporate credit, lending and structured credit strategies. It follows the AG CSF2A (Annex) Dislocation Fund, which closed in March 2023 with over $1.3 billion. The firm, founded in November 1988, has more than 650 employees, including over 200 investment professionals, and is headquartered in New York with offices in the U.S., Europe and Asia.
The firm reports approximately $73 billion in total AUM as of December 31, 2022. That figure includes fund-level asset-related leverage. Under its prior methodology, which excluded leverage, AUM was about $53 billion as of the same date. The firm says the change reflects a methodology update rather than a material change in its advisory business.
The fund invests in asset-based specialty private credit across a range of trade formats and collateral types within consumer, real asset, and other specialty lending markets. The firm says it aims to identify and fill material "financing gaps" by providing flexible capital to assets or borrowers that do not fit traditional lending categories. The release also notes that Angelo Gordon applied its experience with fund-backed rated notes to the vehicle, giving U.S. insurance carriers a capital-efficient way to access the strategy.
T.J. Durkin, Head of Structured Credit and portfolio manager of the fund, said that rising rates, widening spreads and a pullback by banks are creating a significant, ongoing dislocation in specialty finance markets and a need for capital across asset types. Josh Baumgarten, co-CEO, co-CIO and Head of Credit, said the fundraise supports the firm's plan to scale its all-weather credit platform across the liquidity spectrum.
The fund expands Angelo Gordon's global credit platform, bringing its credit AUM to $55 billion across corporate credit, lending and structured credit strategies. It follows the AG CSF2A (Annex) Dislocation Fund, which closed in March 2023 with over $1.3 billion. The firm, founded in November 1988, has more than 650 employees, including over 200 investment professionals, and is headquartered in New York with offices in the U.S., Europe and Asia.
The firm reports approximately $73 billion in total AUM as of December 31, 2022. That figure includes fund-level asset-related leverage. Under its prior methodology, which excluded leverage, AUM was about $53 billion as of the same date. The firm says the change reflects a methodology update rather than a material change in its advisory business.
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