TPG Angelo Gordon raises $2.5bn for European property fund
TPG Angelo Gordon has raised $2.5 billion for its fourth European value-add real estate fund, securing strong backing from global institutional investors as it targets transitional and underperforming assets across the UK, Western Europe, and the Nordics.
AG Europe Realty Fund IV closed in early May with $2.27 billion in capital commitments and $214 million in co-investment capital. It is the firm’s largest European real estate fund and the first since TPG, a US-based alternative investment group, acquired Angelo Gordon in November 2023.
The fund acquires sub-performing or mismanaged real estate assets through privately negotiated or off-market transactions. It is structured to pursue opportunities across office, residential, industrial and other sectors, often when owners face capital constraints or operational complexity. The fund will invest in income-producing assets and repositioning projects, with value creation driven by asset-level improvements and leasing initiatives.
Since launching its European real estate platform in 2009, TPG Angelo Gordon has acquired more than $6 billion of assets across the region. The firm typically works with local operating partners — currently around 50 across its European markets — to implement active asset management strategies and improve performance.
“Fund IV is the strategy’s largest to date, 50% ahead of its predecessor vehicle, a testament to our operating partner network, disciplined investment approach, and highly dedicated team,” said Anuj Mittal, partner and head of TPG AG Europe Real Estate.
Roughly 92% of the capital was raised from investors outside Europe, with strong participation from sovereign wealth funds and pensions in Asia-Pacific and the Middle East.
Public and corporate pension schemes, endowments and insurance groups also backed the fund. The Los Angeles County Employees Retirement Association (LACERA) committed $180 million.
According to investor documents, the AG Europe Realty series has achieved a net internal rate of return of 15.9% and a 1.5x net multiple of capital across earlier vehicles. TPG Angelo Gordon said it expects European real estate dislocation — driven by interest rate volatility, constrained lending, and weaker liquidity — to continue generating entry points for value-add strategies.
The fund will deploy capital over a multi-year investment period, focusing on Western Europe’s largest cities, including London, Paris, Amsterdam, and Madrid, as well as selected Nordic and German urban centres.
