NEW YORK, May 13, 2015 /PRNewswire/
-- AllianceBernstein L.P. ("AB"), a leading global investment
management firm, today announced that AB Private Credit Investors,
LLC (AB-PCI) has secured total equity commitments of $1.1 billion from a diverse group of investors,
including public and private institutions, family offices and high
net worth individuals. Total purchasing power for AB-PCI will
likely exceed $2 billion taking into
account anticipated portfolio-level financing. The five-person
AB-PCI founding team joined AB in 2014 and has grown to 15 with
plans for continued additions throughout the year.
"We are very pleased with this successful fundraising,"
commented Matt Bass, COO of
Alternatives. "We continue to find that investors have strong
demand for private credit due to its attractive yield profile,
persistent illiquidity premium, floating rate structure as well as
potential downside protection given the privately negotiated nature
of these transactions."
Last year, the firm established AB-PCI, a new platform led by
the former senior leadership group of Barclays Private Credit
Partners LLC. This platform is an integral part of AB's broader
efforts to build out a diversified offering of alternative
investment products, specifically responding to increased demand
from clients seeking exposure to less liquid private credit
strategies. AB-PCI emphasizes secured lending by focusing on
first lien, unitranche and second lien loans, while selectively
considering mezzanine, structured preferred stock and non-control
equity co-investment opportunities. This flexible mandate enables
AB-PCI to pursue its investment objectives while also seeking to
provide highly customized solutions for borrowers.
"We believe the size and speed of this capital raise
demonstrates the attractiveness of middle market private credit as
an asset class to both institutional investors and high net worth
clients," said Brent Humphries, head
of AB-PCI. "We are grateful that our investors have entrusted
us to pursue the attractive long-term investment opportunity
provided by private credit."
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.
As of March 31, 2015,
AllianceBernstein Holding L.P. owned approximately 36.8% of the
issued and outstanding AB Units and AXA, one of the largest global
financial services organizations, owned an approximate 62.7%
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. This communication is not intended for public use
or additional distribution and is limited only to recipients who
are both "qualified purchasers" under Section 3(c)(7) of the
Investment Company Act of 1940, as amended, and "accredited
investors" under the Securities Act of 1933, as amended.
A Word about Risk
AB-PCI 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. AB-PCI 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 AB-PCI may involve higher fees and are subject to
limitations on transferability and liquidity. AB-PCI is
subject to strategy-specific risks, including risks associated with
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