AllianceBernstein Announces Successful First Closing for Latest US Commercial Real Estate Debt Fund
NEW YORK, March 11, 2021 / PRNewswire / – AllianceBernstein LP (“AB”) (NYSE: AB) has successfully closed the first close of its fourth US Commercial Real Estate Debt Fund (“CRED IV”). This alternative fund has secured nearly $ 900 million in capital commitments to date. Equitable will act as the main investor and continue the strong partnership between AB and Equitable as AB expands its alternative platform.
CRED IV is a continuation of the transition strategy for real estate loans successfully implemented by previous AB CRED funds. CRED IV will borrow full floating rate first mortgage loans directly backed by high quality US commercial real estate for transition. These loans are not kept leveraged.
The CRED funds platform has taken out and almost borrowed more than 100 loans $ 7 billion in capital commitments from institutional investors worldwide since the strategy was launched in 2013.
The successful first completion of CRED IV is further evidence of AB’s ability to raise significant capital for its rapidly growing platform for private alternatives despite the challenges posed by COVID-19. The deal quickly follows on from AB’s announcement in the fourth quarter of last year that it would launch its new European Commercial Property Debt (“ECRED”) platform. ECRED, led by an industry veteran Clark CoffeeThe company was founded with a capital of almost EUR 1.5 billion, making it one of the largest real estate launches in Europe in the past few years. The ECRED platform is expected to announce its first lending since joining AB in the coming weeks.
Matthew Bass, Head of Private Alternatives at AB, commented, “The acquisition of nearly $ 900 million in capital commitments on the first close of CRED IV shows the continued appeal of our US CRED funds, which will continue to thrive after the shock of COVID , as opportunities continue to arise. 19. ”
“Our CRED strategy offers strong credit diversification and an attractive yield premium compared to public loans. We are confident that these attributes will continue to generate investor interest as we look to future Fund IV closings.”
About AllianceBernstein
AllianceBernstein is a leading global investment management company providing high quality research and diversified investment services to institutional investors, individuals and private clients in the world’s major markets. The company has $ 688 billion in client assets under management February 28, 2021.
You can find more information about AB on our website www.alliancebernstein.com.
The Alternative Fund is only available to “qualified buyers” under Section 3 (c) (7) of the Investment Company Act of 1940, as amended, and to “accredited investors” under the Securities Act of 1933, as amended.
SOURCE Alliance Amber
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