An alternative investment firm headquartered in New York says it's raised more than $1.5 billion in equity commitments for its latest European real estate fund.

Angelo Gordon, which manages about $35 billion, says it surpassed the European real estate fund's target of $1.2 billion. The European real estate fund will look for "off-market investment opportunities with a focus on sub-performing assets along the entire value-add spectrum," according to a press release. 

"We'd like to thank our new and returning investors for their confidence and support of our strategy, which enabled us to hit this Fund's hard cap," said Adam Schwartz, co-CIO and head of real estate at the firm, in a statement. "Our limited partners' robust response speaks to the talent of our experienced team and depth of our industry expertise, which paired with our strong network of trusted operating partners, create a distinctive edge when it comes to deal sourcing, improving asset performance, and value creation."

The European real estate fund saw "strong backing" from new investors and existing investors, the firm said, and will target assets in the United Kingdom and in major Western European markets.

"Significant levels of dislocation and distress in the real estate sector in the UK and Western Europe persist, with political uncertainty, weak banks, and sluggish economies contributing to the emergence of new pockets of stress," said Anuj Mittal, co-portfolio manager of European Real Estate, in a statement. He says they believe the coronavirus "will likely lead to a new set of distress."

In Europe, the firm has bought more than 75 real estate transactions since 2009, according to the press release. It says those transactions have totaled more than $4 billion.