NEW YORK, April 20, 2016 /PRNewswire/ --
AllianceBernstein L.P. ("AB"), a leading global investment
management firm, today announced the closing of its second
commercial real estate debt fund with total commitments of
$1.55 billion, surpassing its
$1 billion target. AB's second fund
("Fund II") received commitments from a diverse range of global
insurers, pensions, and foundations and closed at a size double the
$750 million predecessor fund, AB
Commercial Real Estate Debt Series I-B ("Fund I"). In connection
with Fund II's closing, investors for Fund I also extended their
commitment period which increased total commitments in AB's private
commercial real estate credit platform to in excess of $2.3 billion.
Building off the success of Fund I and growing client demand for
high-quality alternatives to traditional fixed income strategies,
Fund II will continue to directly originate and purchase senior
whole loans secured by transitional commercial real estate assets
across the U.S. The loans are held on an unleveraged basis,
aiming to generate stable, diversifying sources of floating rate
income for investors. The strategy remains consistent with
that of Fund I and primarily focuses on loan sizes ranging from
$15 to $125 million, targeting
loan-to-value ratios of 65% to 75% and strong diversification by
geography and property type.
"We think the risk-adjusted returns in transitional U.S.
commercial real estate debt, particularly when accessed through an
unleveraged model, are very attractive, and the continued strong
demand from clients across the globe is a testament to the success
of our team, the differentiation of our strategy and our rigorous
underwriting approach," said Roger
Cozzi, CIO of Commercial Real Estate Debt.
The Real Estate Group was formed in 2009 as part of AB's efforts
to expand its alternatives platform. Today, the Real Estate Group
has closed more than $5 billion in
capital commitments across dedicated opportunistic private equity
and debt whole loan strategies. AB's broader alternatives platform
totals more than $23 billion in
assets and includes multi-manager offerings, absolute return equity
and fixed income strategies, as well as private market offerings
targeting commercial and residential real estate, middle market
lending, and infrastructure.
"In about six years we've been able to build a robust real
estate platform at AB from scratch and we are both fortunate and
pleased that our disciplined approach has resonated with
clients. Both of our recent equity and debt funds have
significantly exceeded their original fundraising targets and our
broader alternatives platform has continued to grow both in size
and product offerings," said Jay
Nydick, Co-CIO of AB's Real Estate Group.
About AB
AB is a leading global investment management
firm that offers high-quality research and diversified investment
services to institutional investors, individuals and private wealth
clients in major world markets.
At March 31, 2016, AB Holding
owned approximately 36.4% of the issued and outstanding AB Units
and AXA, one of the largest global financial services
organizations, owned an approximate 63.2% economic interest in
AB.
Additional information about AB may be found on our website,
www.abglobal.com.
This material is provided for informational purposes
only
Under no circumstances may any information contained
herein be construed as investment advice. This communication is not
an offer for the purchase or sale of any financial instrument,
product or services sponsored or provided by AB. The information
contained herein reflects views of AB or its affiliates and sources
it believes are reliable as of the date of this material and may
change at any time after the date of this communication. Investors
should discuss their individual circumstances with their
appropriate investment professionals and read the applicable
offering document(s) carefully before making any investment
decision. AB and its affiliates may have positions in, and
may effect transactions in, the markets and industry sectors
described herein.
A Word about Risk
The Fund is an alternative
investment strategy that could be considered to involve a high
degree of risk, and is designed for investors who understand and
are willing to accept these risks. There can be no assurance
that any alternative investment fund will achieve its investment
objectives. The Fund will not be registered with securities
regulators and will be subject to reduced regulatory oversight.
Performance compensation may create an incentive to make riskier
investments. Alternative investments such as the Fund may involve
higher fees and are subject to limitations on transferability and
liquidity. The Fund is subject to strategy-specific risks,
including risks associated with investments in real estate and
illiquid assets, counterparty credit exposure, hedging, defaults,
and the use of derivatives and leverage. A more detailed
discussion of risk factors can be found in the applicable offering
document(s). Forward-looking information in this material is
subject to inherent limitations. Actual results will vary and the
variations may be material.
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SOURCE AllianceBernstein L.P.