Commitment from Neuberger Berman unit will be deployed across a series of debt and equity funds
Asia Capital Real Estate ("ACRE"), a global real estate private equity firm managing capital for institutional and family office investors, today announced that a fund managed by Almanac Realty Investors, the private real estate investment arm of Neuberger Berman, has made a $320 million capital commitment to various funds managed by ACRE. The investment will serve to provide strategic growth capital to ACRE’s general partner and investment manager as well as anchor investments in their upcoming series of real estate private equity and debt funds, focused on multifamily investments.
ACRE aims to invest over $2 billion through its upcoming private equity funds, and has already deployed over $300 million in loans, with the support of Almanac and other investors.
"We’re very pleased to have an asset management firm as prominent as Neuberger Berman invest in ACRE with a commitment of this magnitude and equally honored to partner with Almanac’s experienced and highly respected team to help grow our platform and broaden our relationships with institutional investors and allocators," said ACRE Founding Partner Les Menkes. "This timely capital infusion serves as a testament to our proven investment, development and management strategies and the track record of success we’ve built over the last decade."
Almanac’s $320 million commitment comes in the midst of a volatile year in the commercial real estate industry, as investors wrestle with market disruption brought on by the COVID-19 pandemic. As a vertically integrated real estate private equity firm and direct multifamily lender that specializes in the acquisition, development and management of value-add workforce and affordable housing properties in strategic growth markets across the United States, ACRE is well-positioned to provide an alternative for investors seeking to avoid exposure to areas of the real estate market that have been adversely affected by the COVID-19 pandemic, such as retail and hospitality.
"The uncertainty of the current economic climate has had acute effects for commercial real estate, which is causing many investors to seek out funds with a more secure risk-return profile," said ACRE Founding Partner Michael Van Der Poel. "Middle-market multifamily assets offer a more stable long-term outlook than many other areas of the market, and sponsors are growing increasingly aware of the asset class’s merits and differentiating factors. ACRE’s experience in this area and creative structuring approach offer a natural advantage in the sector, and we are grateful to have the backing of Neuberger Berman and Almanac as we successfully navigate a rapidly evolving market and accelerate our relationships with global institutional investors."
"ACRE has a successful track record in the multifamily sector, spanning equity and credit investments and property management, which in combination with positive long-term fundamentals in the multifamily space should lend itself to both attractive real estate opportunities as well as the continued growth of a best-in-class, vertically-integrated multifamily platform," said Justin Hakimian, Managing Director at Almanac.
Neuberger Berman acquired Almanac in January 2020 to deepen its offering of real estate solutions. Founded in 1981, Almanac Realty Investors partners with established owner-operators in all sectors of the real estate market to raise capital to fuel company growth and has committed more than $6.1 billion in capital to 46 real estate companies, both public and private, throughout North America. Various partners include Mack Real Estate Group, RXR Realty, CA Ventures, Slate Asset Management, ReNew Senior Living and Westcore Properties, among others.
Independent and employee-owned financial services firm Baird served as exclusive financial advisor to ACRE on the transaction, led by Jim O'Brien of Baird's Real Estate Investment Banking team.
About Asia Capital Real Estate Founded in 2011, ACRE is a global real estate private equity firm managing capital for institutional and family office investors through a series of private equity and debt funds which have invested over $2.7 billion, concentrated in multifamily related strategies. ACRE is a vertically integrated owner operator specializing in multifamily real estate through active investments in both direct equity and debt capital markets as well as special situation opportunities. ACRE manages a global portfolio with offices in Atlanta, New York and Singapore.
Since its inception, ACRE has acquired, operated, developed and made loans on over 22,000 apartments across 75 properties and 31 cities. ACRE’s strategies focus on direct real estate equity and credit investments and are concentrated in the United States, with additional properties currently in development in Southeast Asia and the United Kingdom. www.acremgt.com
About Neuberger Berman Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 24 countries, Neuberger Berman’s diverse team has over 2,300 professionals. For seven consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $374 billion in client assets as of September 30, 2020. For more information, please visit our website at www.nb.com.
About Almanac Realty Investors Since 1996, Almanac’s (together with its predecessor, Rothschild Realty, Inc.) primary activity has been making growth capital investments into private and public companies which own and operate real estate in North America. Almanac managed funds have committed over $6.1 billion to 46 companies. Almanac’s portfolio companies are structured to combine proven management teams within a specific real estate sector together with ownership of focused portfolios of real estate assets and interests. These companies are governed by a board of directors consisting primarily of representatives from the management teams and Almanac, with a focus on protecting and growing shareholder value, generating dividends, setting strategy, allocating capital and working with management to optimize resources. www.almanacrealty.com.
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