Global investment management firm AllianceBernstein(AB) has completed the first closing of its fourth US Commercial Real Estate Debt fund (CRED IV) with nearly $900m in capital commitments.
CRED IV is a continuation of the transitional real estate lending strategy implemented by previous AB CRED funds, said AllianceBernstein.
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.
The platform of CRED funds has originated in excess of 100 loans and raised nearly $7bn in capital commitments from institutional investors worldwide since the launch of the strategy in 2013.
The close follows on AllianceBernstein’s announcement in Q4 of last year of the launch of its new European Commercial Real Estate Debt (ECRED) platform.
“Attracting close to $900mm 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,” said Matthew Bass, Head of Private Alternatives for AllianceBernstein.
“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,” he added.