Investment management group AllianceBernstein has raised $680m for its first private equity real estate fund, with investors including Singapore-based investment company Temasek and pension fund Alberta Teachers Retirement Fund, as well as institutions from the US, Hong Kong and Japan
AllianceBernstein U.S. Real Estate Partners also received commitments from some of the firm’s private clients and employees. With additional co-investment capital from key strategic investors, the Fund could have approximately $900m of available equity, it said.
AllianceBernstein formed its real estate group in September 2009, led by co-CIO’s Brahm Cramer and Jay Nydick as well as managing director, Adam Brooks. Cramer previously co-headed Goldman Sachs’ real estate principal investment area while Brooks built and led the firm’s real estate mezzanine investing businesses. Nydick was most recently president of iStar Financial, an NYSE-listed real estate finance company.
“As a first time fund, we are thrilled with the success of our capital raise within a very difficult fundraising environment,” said Cramer. “We are excited to partner with investors who share our strategic vision of creating value through the resolution of complex restructurings and recapitalizations of distressed real estate assets across the US.”
To date, the fund has committed more than $200m of equity across six separate transactions. These investments include recapitalisations of distressed loans secured by office buildings in San Jose, California and suburban Seattle, a limited service hospitality portfolio and a residential land site in New Jersey. It has also made direct real estate acquisitions including multifamily portfolios in Manhattan and in the Southeast U.S.
“We are pleased with the pace of investments and the make-up of the current portfolio,” said Nydick, the Real Estate Group’s co-CIO. “We believe the current investments confirm our ability to execute our strategy and to generate attractive risk-adjusted returns through the resolution of situational distress.”
He said the fund is also seeking debt and equity investment opportunities across all property types and geographic locations throughout the US with a current focus on the recapitalisation of distressed assets.
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