AllianceBernstein On Its New $1.3B CRE Debt Fund
An unlevered vehicle, the fund’s “ability to lend throughout a market cycle is a defining feature.”
AllianceBernstein Holdings’ (AB) US Commercial Real Estate Debt Fund IV has secured commitments of $1.3 billion from global institutional investors, the company has announced.
The company said that the CRED IV closing is the “latest milestone in a period of considerable growth for AB’s US Commercial Real Estate Debt platform,” which has cumulatively secured new capital commitments of over $4.5 billion since December 2020.
Furthermore, nearly half of its transactions have come from repeat borrowers, according to AB’s US Commercial Real Estate Debt Chief Investment Officer Peter Gordon.
AB tells GlobeSt.com that the Commercial Real Estate Debt Fund IV seeks to build an unleveraged diversified portfolio of senior loans originated throughout major markets in the US across various sectors (i.e. office, retail, hospitality, multifamily, and industrial).
AB To Use a ‘Defensive’ Strategy
The strategy is designed to be defensive, focused on income generation and capital preservation, and intended to have the ability to generate the targeted returns at any point in a market cycle.
Gordon tells GlobeSt.com, “As an unlevered vehicle, CRED IV’s ability to lend throughout a market cycle is a defining feature. Many asset owners are currently evaluating the highest and best use of assets as we come out of COVID allowing us to support our borrowers as they invest new capital into assets to optimize performance.
“We anticipate a growing need for financing to transition assets over the next 5 to 10 years and look forward to continuing to prudently deploy our capital going forward on behalf of our partners.”