AllianceBernstein has wrapped fundraising efforts on the fourth iteration of its US commercial real estate debt strategy with $1.3 billion of committed capital from a global base of institutional investors.
The Nashville-based asset manager closed its US Commercial Real Estate Debt Fund IV on August 4 and is now gearing up for new deployment opportunities on the value-add transitional lending strategy.
AB has raised $4.5 billion of capital commitments through its US commercial real estate debt platform since December 2020 and now maintains $10.5 billion in total assets with $9 billion of the AUM under active management. Since its 2013 inception, the debt platform has deployed $8.6 billion across more than 130 loans.
“Attracting over $4.5 billion of new capital commitments for our US CRED platform is reflective of the successful deployment and management of our portfolio over the past decade, including navigating the covid-19 pandemic,” said Peter Gordon, AB’s US CRE debt CIO.
“The expansion in the cost and tenor of capital – combined with having access to both levered and unlevered strategies – enables us to deliver broader solutions to our clients and be more innovative and relevant to our borrowers,” Gordon said. “With nearly half of our transactions coming from repeat borrowers, we believe that this will continue to further differentiate the platform in the years to come.”
The debt fundraising finale arrives nearly five months after AB bolstered its CRE debt capabilities with the acquisition of Minneapolis-based CarVal Investors, which managed $14.3 billion in assets when the deal was outlined in March this year.
AB has been focused on expanding its US CRE debt platform in tandem with the growth of its other private market verticals in partnership with New York-based insurer Equitable, which maintains a 65 percent stake in the asset manager.
The CarVal acquisition was completed on 1 July and grew AB’s private markets platform to $54 billion in AUM. CarVal notably works across the CRE debt spectrum with capabilities in opportunistic and distressed credit, renewable energy infrastructure, specialty finance and transportation investments.