NEW YORK CITY—AllianceBernstein (AB) has closed its second commercial real estate debt fund with total commitments of $1.55 billion, surpassing its $1 billion target.

AB's 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 US, AB says. 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.