Global asset manager AllianceBernstein has raised $3.1bn ($2.69bn) for its third US commercial real estate loan fund at final close.
The manager said AB Commercial Real Estate Debt Fund III received around 70% of commitments from European and UK institutional investors, including several global insurers.
The commitment is double that of its predecessor, AB Commercial Real Estate Debt Fund II, which closed in 2016.
AllianceBernstein said the fund will focus its investments on senior secured commercial real estate loans with a maturity of three to five years.
Roger Cozzi, the CIO of commercial real estate debt at AllianceBernstein, said: “Our success is built on a differentiation of the investment strategy and consistent approach to risk management.
“Our commercial real estate debt funds focus on senior mortgages secured by high-quality commercial real estate assets owned by professional real estate investors in major US cities. The loans are not leveraged, targeting a gross return of Libor plus 500 basis points with an average LTV of around 70%.”
Nitish Sharma, the head of UK Institutional at AllianceBernstein, said: “AB’s investment activities in the field of alternative investments are growing and we continue to see interest from a broad spectrum of institutional investors in high-quality alternative solutions.
“Given the current market environment and very low-interest rates investors are looking for stable portfolio returns at reasonable risk. Our extensive experience in US commercial real estate loan allows us to provide an interesting source of both income and diversification, compared to more traditional fixed-income investments.”
AllianceBernstein currently manages $540bn in client assets under management. The firm’s investment capabilities span diverse asset classes, investment styles and geographic markets.
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