AllianceBernstein Closes U.S. Commercial Real Estate Debt Fund IV

The company secures $4.5 billion commitments over the last 18 months on its US CRED platform

NASHVILLE, Tenn., August 4, 2022 /PRNewswire/ — AllianceBernstein Holdings LP (“AB”) (NYSE: AB), one of the world’s leading investment management and research firms, announced the final closing of the US Commercial Real Estate Debt Fund IV (“Fund IV”), guaranteeing the commitments of $1.3 billion to global institutional investors.

Fund IV continues the successful transitional value-added lending strategy that AB has overseen for nine years. Alongside Fund IV, the platform has grown significantly over the past 18 months with distinct new mandates focusing on fixed and base rate loans, and the launch of AB’s first private commercial mortgage REIT, which quickly reached more than $400 million of equity committed since the acceptance of its first commitments in the fourth quarter of 2021.

The closing of CRED IV is the latest step in a period of significant growth for AB’s U.S. commercial real estate debt platform, which has accrued new capital commitments for more than $4.5 billion since December 2020.

The total assets of the US commercial real estate debt platform, raised from investors around the world since the platform’s launch in 2013, currently stand at $10.5 billion with $9.0 billion of this AUM under active management today. The team deployed $8.6 billion capital to more than 130 loans since its creation.

“Attract more $4.5 billion new capital commitments for our CRED platform in the United States reflects the successful deployment and management of our portfolio over the past decade, including the management of the COVID-19 pandemic,” said the Chief Investment Officer of AB’s U.S. Commercial Real Estate Debt Peter Gordon. “The increased cost and term of capital – combined with access to leveraged and non-leveraged strategies – allows us to offer broader solutions to our clients and to be more innovative and relevant to our borrowers. With nearly half of our transactions coming from repeat borrowers, we believe this will continue to further differentiate the platform in the years to come.”

The continued expansion of AB’s US commercial real estate debt platform is consistent with AB’s strategy to grow its private markets platform, in partnership with Equitable, to meet client needs. On July, 1stAB has completed its acquisition of investors CarVal, which extends AB’s private markets platform to $54 billion in AUM. CarVal brings its expertise in investing in opportunistic and distressed credits, renewable energy infrastructure, specialized financing and transport investments. These strategies, combined with AB’s existing business focused on direct business lending and commercial real estate lending, provide clients with a range of alternative investment solutions.

About AllianceBernstein (AB)

AllianceBernstein is a leading global investment management firm that provides high-quality, diversified research and investment services to institutional investors, individuals and private clients in major global markets. From June 30, 2022AllianceBernstein had $647 billion in assets under management. Additional information about AB can be found on our website, www.alliancebernstein.com.

SOURCE AllianceBernstein

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