AllianceBernstein launches European real estate debt unit

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AllianceBernstein has launched a European commercial real estate debt activity by taking a minority stake in the pan-European real estate debt platform Lacarne Capital, a spokesperson confirmed.

Financial terms of the deal were not disclosed.

AB has already taken an undisclosed stake in the company and plans to acquire the rest of the company early next year, the spokesperson said.

The platform will be launched with more than 1.2 billion euros ($ 1.4 billion) in initial capital. It will focus on direct origination and secondary holdings in whole loans, subordinated loans, preferred shares and other real estate-backed investments in the UK and Europe, according to a press release.

Equitable, which owns a 65% stake in AB, is the main initial investor, the statement said.

The platform will be led by Clark Coffee, founder of Lacarne Capital, who will join the platform with his team once the rest of his business is acquired, the spokesperson said. Mr. Clark will become CIO of the European commercial real estate debt business.

AB plans to strengthen the team over the next 24 months depending on capital base and investing activities, he added.

The deal is part of AB’s plans to develop and diversify its private alternatives unit. The company’s US commercial real estate debt business oversees $ 5.8 billion of liabilities.

“Following the success of our CRED business in the US, Europe is the next logical step in expanding AB’s growing franchise of private alternatives,” said Matthew Bass, head of private alternatives for AB, in the statement. .

AB has $ 631 billion in assets under management.

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