Angelo Gordon Boosts Latest Distressed Fund to $3.5 Billion

Angelo Gordon & Co. has amassed about $3.5 billion to deploy to virus-stricken businesses after a new round of fund raising.

The firm obtained $1.2 billion of fresh capital for the second iteration of a fund targeting discounted debt in corporate credit markets, according to people with knowledge of the situation. It has previously raised $1.8 billion for the original Angelo Gordon Credit Solutions Fund Annex Dislocation Fund, plus additional capital, said the people, who asked not be named discussing a private matter.

Credit investors have been building up distressed-debt funds for years in preparation for a downturn. The pandemic ...