AllianceBernstein has raised an initial $900m (€741.7m) for its fourth US commercial real estate debt fund.
The manager said the commitments to the Commercial Real Estate Debt IV (CRED IV) fund has been led by Equitable.
CRED IV will directly originate floating-rate first mortgage whole loans secured by high quality, transitional US commercial real estate. Those loans are held on an unleveraged basis.
Matthew Bass, the head of private alternatives for AllianceBernstein, said: “Attracting close to $900m in capital commitments for CRED IV’s first closing demonstrates the continued appeal of our US CRED funds, which are poised to continue thriving as opportunities continue to emerge after the shock of COVID-19.
“Our CRED strategy provides strong credit diversification and attractive yield premium relative to public credit. We’re confident these attributes will continue to attract investor interest, as we look toward future fund IV closings.”
The manager’s third US commercial real estate loan fund raised $3.1bn at its final closed in August 2018.
Late last year, AllianceBernstein has partnered with Lacarne Capital to create a European Commercial Real Estate Debt (ECRED) business. The ECRED platform was launched with more than €1.2bn of initial capital to target real estate backed investments across the UK and European markets.
AllianceBernstein said the ECRED platform expects to announce its first loan origination since joining AB in the coming weeks.
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