AllianceBernstein launched a European commercial real estate debt business by taking a minority stake in pan-European real estate debt platform Lacarne Capital, a spokesman confirmed.
Financial terms of the deal were not disclosed.
AB already has taken an undisclosed stake in the firm and plans to acquire the remainder of the company early next year, the spokesman said.
The platform will launch with more than €1.2 billion ($1.4 billion) of initial capital. It will focus on direct origination and secondary participations in whole loans, subordinate loans, preferred equity and other real estate-backed investments across the U.K. and Europe, a news release said.
Equitable, which owns a 65% stake in AB, is the lead initial investor, the release said.
The platform will be led by Clark Coffee, founder of Lacarne Capital, who will join the platform along with his team once the remainder of his firm is acquired, the spokesman said. Mr. Clark will become CIO of the European commercial real estate debt business.
AB plans on ramping up the team over the next 24 months based on capital base and investment activities, he added.
The deal is part of AB's plans to grow and diversify its private alternatives unit. The firm's U.S. commercial real estate debt business oversees $5.8 billion in commitments.
"Following the success of our U.S. CRED business, Europe is the logical next step for expanding AB's growing private alternatives franchise," Matthew Bass, head of private alternatives for AB, said in the release."
AB has $631 billion in assets under management.
