AB Surpasses $1 Billion In Equity For Middle Market Direct Lending Platform In Less Than 1 Year Since Bringing On Private Credit Team, With Total Purchasing Power Including Anticipated Portfolio Leverage In Excess Of $2 Billion
NEW YORK, May 13, 2015 /PRNewswire/ -- AllianceBernstein L.P. ("AB"), a leading global investment management firm, today announced that AB Private Credit Investors, LLC (AB-PCI) has secured total equity commitments of $1.1 billion from a diverse group of investors, including public and private institutions, family offices and high net worth individuals. Total purchasing power for AB-PCI will likely exceed $2 billion taking into account anticipated portfolio-level financing. The five-person AB-PCI founding team joined AB in 2014 and has grown to 15 with plans for continued additions throughout the year.
"We are very pleased with this successful fundraising," commented Matt Bass, COO of Alternatives. "We continue to find that investors have strong demand for private credit due to its attractive yield profile, persistent illiquidity premium, floating rate structure as well as potential downside protection given the privately negotiated nature of these transactions."
Last year, the firm established AB-PCI, a new platform led by the former senior leadership group of Barclays Private Credit Partners LLC. This platform is an integral part of AB's broader efforts to build out a diversified offering of alternative investment products, specifically responding to increased demand from clients seeking exposure to less liquid private credit strategies. AB-PCI emphasizes secured lending by focusing on first lien, unitranche and second lien loans, while selectively considering mezzanine, structured preferred stock and non-control equity co-investment opportunities. This flexible mandate enables AB-PCI to pursue its investment objectives while also seeking to provide highly customized solutions for borrowers.
"We believe the size and speed of this capital raise demonstrates the attractiveness of middle market private credit as an asset class to both institutional investors and high net worth clients," said Brent Humphries, head of AB-PCI. "We are grateful that our investors have entrusted us to pursue the attractive long-term investment opportunity provided by private credit."
About AB
AB is a leading global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals and private wealth clients in major world markets.
As of March 31, 2015, AllianceBernstein Holding L.P. owned approximately 36.8% of the issued and outstanding AB Units and AXA, one of the largest global financial services organizations, owned an approximate 62.7% economic interest in AB.
Additional information about AB may be found on our website, www.abglobal.com.
This material is provided for informational purposes only
Under no circumstances may any information contained herein be construed as investment advice. This communication is not an offer for the purchase or sale of any financial instrument, product or services sponsored or provided by AB. The information contained herein reflects views of AB or its affiliates and sources it believes are reliable as of the date of this material and may change at any time after the date of this communication. Investors should discuss their individual circumstances with their appropriate investment professionals and read the applicable offering document(s) carefully before making any investment decision. AB and its affiliates may have positions in, and may effect transactions in, the markets and industry sectors described herein. This communication is not intended for public use or additional distribution and is limited only to recipients who are both "qualified purchasers" under Section 3(c)(7) of the Investment Company Act of 1940, as amended, and "accredited investors" under the Securities Act of 1933, as amended.
A Word about Risk
AB-PCI is an alternative investment strategy that could be considered to involve a high degree of risk, and is designed for investors who understand and are willing to accept these risks. There can be no assurance that any alternative investment fund will achieve its investment objectives. AB-PCI will not be registered with securities regulators and will be subject to reduced regulatory oversight. Performance compensation may create an incentive to make riskier investments. Alternative investments such as AB-PCI may involve higher fees and are subject to limitations on transferability and liquidity. AB-PCI is subject to strategy-specific risks, including risks associated with counterparty credit exposure, hedging, defaults, and the use of derivatives and leverage. A more detailed discussion of risk factors can be found in the applicable offering document(s). Forward-looking information in this material is subject to inherent limitations. Actual results will vary and the variations may be material.
SOURCE AllianceBernstein
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