ACRE Successfully Closes $1 Billion Credit Fund Amid Market Confidence

ACRE Closes $1 Billion Credit Fund to Expand Lending Platform

ACRE, a prominent name in the private real estate fund management sector focused on U.S. housing, has made waves by successfully closing ACRE Credit Fund II. This milestone signifies the culmination of $1 billion in capital commitments, marking the hard cap for this fund. As ACRE's sixth discretionary vehicle and the second dedicated credit fund, it reflects a solid confidence from global investors, including pensions, insurance firms, endowments, asset managers, and family offices, particularly within the evolving market conditions.

Daniel Jacobs, Managing Partner at ACRE, expressed, "The success of Credit Fund II is a strong endorsement of our Firm, track record, and the opportunity set we see ahead." He further elaborated on the current market circumstances, which he believes present one of the most enticing prospects for multifamily credit in over a decade. Factors contributing to this situation include a persistent imbalance in housing supply and demand, an impending wave of loan maturities following historical interest rate hikes, and fundamental changes in capital treatment by global banks. With a lending capacity exceeding $4 billion and established relationships with borrowers, ACRE is primed to deploy capital effectively into this evolving market landscape.

Founded to offer flexible, institutional-grade capital to the multifamily sector, ACRE has diversified into a reputable and vertically integrated player in ownership, operation, development, and lending. The company has executed over $7 billion in real estate transactions across 195 debt and equity investments, which showcases its extensive expertise and proven ability to allocate capital across various financing structures. The firm's strong equity platform and national scope enable it to maintain lasting relationships with high-caliber borrowers across burgeoning markets, often originating these partnerships through credit collaborations with leading operators that transition into strategic equity alliances.

The launch of ACRE Credit Fund II arrives at a critical time in the real estate market. With rising interest rates, diminished bank lending, and an increasing demand for innovative capital solutions, many borrowers are seeking out seasoned, adaptable lenders. Concurrently, a long-term shortfall in housing supply and shifts in demographics are generating sustained demand for multifamily housing, underlining the timeliness for capital investment in the private credit sphere.

What sets ACRE apart is its agility, reliability, and innovative approach in providing solutions. As a non-bank lender, ACRE focuses on delivering bespoke, disciplined, and adaptable capital solutions that are especially relevant in a fluctuating economic environment. Supported by a deep reservoir of sector knowledge, a seasoned underwriting team, and access to warehouse and public securitization markets, ACRE has carved out a niche as a distinctive credit provider. The firm has already seen success with four public securitizations totaling $3.0 billion, which includes three commercial real estate collateralized loan obligations (CRE CLOs) and one Freddie Mac Q-deal, offering investors non-recourse, non-mark-to-market, match-term financing.

As ACRE continues to expand its operations, it remains dedicated to its core tenets of credit discipline, borrower alignment, and safeguarding against downturns. Given the volatility present in current capital markets, ACRE anticipates that it will uncover some of the best lending opportunities available today, positioning the firm well to capitalize on these prospects. Through the launch of Fund II, ACRE is reaffirming its ambition to become a premier entity providing private credit solutions within the U.S. multifamily landscape.

About ACRE

Founded in 2011 and based in New York, with additional offices in Miami and Atlanta, ACRE specializes in managing real estate funds with a focus on U.S. residential housing. The firm has executed transactions totaling over $7 billion across 195 investments, demonstrating strong operational capabilities across both debt and equity strategies. ACRE deploys capital through dedicated teams engaging in direct lending, acquisitions, development, and build-to-rent initiatives, empowered by its integrated asset, property, and construction management platforms.