AB's Second Real Estate Private Equity Fund Surpasses $1.2 Billion In Commitments
AB continues to grow and diversify its alternative investments platform in response to client demand
NEW YORK, June 22, 2015 /PRNewswire/ -- AllianceBernstein L.P. ("AB"), a leading global investment management firm, today announced the closing of U.S. Real Estate Partners II L.P. ("ABREP II" or "The Fund"), with total commitments of $1.2 billion, surpassing its $1 billion target. ABREP II closed in less than 12 months, securing commitments from all previous institutional investors in the $680 million predecessor fund, ABREP I, while also further growing and diversifying its client base to include new pension funds in the U.S., Canada and Europe, insurers, endowments and foundations, family offices and individual investors.
ABREP II will seek to capitalize on a compelling environment for opportunistic special situations investing across the U.S. real estate markets. The strategy remains consistent with that of ABREP I, which invested in a variety of products including multifamily, office, hospitality and land across a spectrum of investment profiles ranging from cash-flowing assets to major repositioning and development. To date, ABREP II has committed approximately $215 million through six investments.
"The fact that we were able to raise more than $1 billion in such a short period of time is a testament to the confidence the marketplace has in the team we have assembled at AB, our investment discipline, and our track record," said Jay Nydick, Co-CIO of AB's Real Estate Group.
The Fund is a major step in the continued growth and evolution of AB's Real Estate Group. Formed in 2009 to create a leading private real estate platform, AB's Real Estate Group has now closed nearly $4 billion in capital commitments across dedicated opportunistic private equity and debt whole loan strategies. In 2013, AB expanded its real estate platform with the launch of its first commercial real estate debt fund, which raised $750 million. The strategy continues to resonate with investors as AB has received commitments of $610 million to its second commercial real estate debt fund as of the end of last quarter.
"We are focused on building a premier real estate franchise at AB," noted Brahm Cramer, Co-CIO of AB's Real Estate Group. "The depth and breadth of our team coupled with our proprietary access to AB's outstanding credit and research analysts are key differentiators that enable us to deliver superior outcomes for both our investors and our operating partners."
AB Continues to Expand its Alts Platform and Surpasses $20B in Assets
Real estate is just one way that AB's alternatives platform continued to expand in response to client demand for diversification and uncorrelated investment outcomes. Today, this platform totals more than $20 billion in assets, and includes multi-manager offerings, absolute return equity and fixed income strategies, and a growing roster of private market offerings targeting commercial and residential real estate, middle market lending, and infrastructure. Key catalysts in building this platform include the hiring in 2009 of veteran hedge fund investors Marc Gamsin and Greg Outcalt from SunAmerica, who now oversee AB's multi-manager offerings, and the 2011 hiring of Kurt Feuerman and several members of his team from Caxton Associates, who now manage AB's long/short US equity strategy.
"We're increasingly being asked by our clients to find new and creative ways to allocate capital across the spectrum of alternative investment opportunities," said Chris Bricker, head of AB's Alternative Investments. "Through a combination of building, buying and partnering, we have taken a very client-centric approach in seeking to provide investors with the most comprehensive alternatives strategies to meet their evolving needs for diversification and additional alpha."
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
The Fund 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. The Fund 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 the Fund may involve higher fees and are subject to limitations on transferability and liquidity. The Fund is subject to strategy-specific risks, including risks associated with investments in real estate and illiquid assets, 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 L.P.
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