AllianceBernstein Announces Launch of NAV Lending Strategy

Rhea-AI Summary

AllianceBernstein L.P. (AB) has announced the launch of a new strategic growth initiative, AB NAV Lending, with an initial anchor investment provided by Equitable Holdings, Inc. (EQH). AB NAV Lending will focus on providing flexible financing solutions based on the net asset value of private equity funds, leveraging the core capabilities, resources, and infrastructure of AB's existing private corporate credit platform, AB Private Credit Investors (AB-PCI). The firm has also hired two industry leaders with more than 20 years combined fund financing experience to lead the new initiative. AB-PCI President J. Brent Humphries believes that AB NAV Lending can become a scaled business that generates attractive, risk-adjusted returns for investors.

Positive

• AB has secured an initial anchor investment from Equitable Holdings, Inc. for the launch of AB NAV Lending, demonstrating a strong partnership and commitment to strategic innovation in private market products.
• The new strategic growth initiative, AB NAV Lending, will focus on providing flexible financing solutions based on the net asset value of private equity funds, leveraging the core capabilities, resources, and infrastructure of AB's existing private corporate credit platform, AB-PCI.
• The firm has hired two industry leaders with more than 20 years combined fund financing experience to lead the new initiative, demonstrating a commitment to expertise and experience in the field.

Negative

• None.

NASHVILLE, Tenn., Dec. 5, 2023 /PRNewswire/ -- AllianceBernstein L.P. ("AB") (NYSE: AB), a leading global investment management and research firm, today announced the launch of a new strategic growth initiative, AB NAV Lending, with an initial anchor investment provided by Equitable Holdings, Inc. (EQH). AB NAV Lending will focus on providing flexible financing solutions based on the net asset value of private equity funds and is a natural extension of AB's existing, market-leading, private corporate credit platform, AB Private Credit Investors (AB-PCI).

AB NAV Lending will leverage the core capabilities, resources, and infrastructure of AB-PCI, which manages $17 billion in assets with a team of 75 professionals. The launch of AB NAV Lending enables AB-PCI to provide fund-level financing to private equity sponsors in addition to portfolio company financing and equity co-investment solutions.

The firm also announced the hiring of two industry leaders with more than 20 years combined fund financing experience: AB-PCI Managing Director and Head of NAV Lending Dupe Adeyemo and Director of NAV Lending Sara Casey. Mr. Adeyemo joins AB-PCI from Barclays, where he delivered fund financing solutions since 2007 and actively led the sourcing and structuring of NAV loans. Ms. Casey joins AB-PCI from Hark Capital, where her responsibilities included sourcing, execution, fundraising and investor relations in the NAV lending space over the last five years. AB-PCI Managing Director and Founding Member Patrick Fear will serve as chair of the new initiative and will be responsible for providing strategic guidance and support.

"Today's announcement underscores our commitment to offering private equity clients and institutional investors access to this rapidly growing asset class," said AB-PCI President J. Brent Humphries. "We believe that AB NAV Lending can become a scaled business that generates attractive, risk-adjusted returns for our investors."

"This launch reflects our strong partnership with Equitable, and the firm's significant commitment to strategic innovation in scalable private market products that benefit our clients," said AB's Head of Private Alternatives Matthew Bass. "AB-PCI's established private equity sourcing relationships, deep sector knowledge, in-depth understanding of corporate valuation across economic cycles, and sophisticated structured finance capabilities will complement the NAV lending expertise of Mr. Adeyemo and Ms. Casey."

About AllianceBernstein

AllianceBernstein 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 October 31, 2023, AllianceBernstein had $652 billion in assets under management. Additional information about AB may be found on our website, www.alliancebernstein.com. 

About AB Private Credit Investors
Established in 2014, AB Private Credit Investors (AB-PCI) is AB's private corporate credit platform. As of September 2023, AB-PCI has committed $24.5 billion across more than 320 portfolio companies, primarily in directly originated and privately negotiated senior secured loans to financial sponsor-backed borrowers in the US middle market. AB-PCI's team of 75 professionals manages more than $17 billion of capital available for investment. Visit here for more information on AB-PCI.

 

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SOURCE AllianceBernstein

FAQ

What is the new strategic growth initiative launched by AllianceBernstein L.P. (AB)?

The new strategic growth initiative is AB NAV Lending, which focuses on providing flexible financing solutions based on the net asset value of private equity funds.

Who provided the initial anchor investment for AB NAV Lending?

The initial anchor investment for AB NAV Lending was provided by Equitable Holdings, Inc. (EQH).

What is the core platform that AB NAV Lending will leverage for its operations?

AB NAV Lending will leverage the core capabilities, resources, and infrastructure of AB's existing private corporate credit platform, AB Private Credit Investors (AB-PCI).

Who will be leading the new initiative for AB NAV Lending?

The new initiative will be led by AB-PCI Managing Director and Head of NAV Lending Dupe Adeyemo and Director of NAV Lending Sara Casey, both with more than 20 years combined fund financing experience.

What is the vision for AB NAV Lending according to AB-PCI President J. Brent Humphries?

AB-PCI President J. Brent Humphries believes that AB NAV Lending can become a scaled business that generates attractive, risk-adjusted returns for investors.