Trending Content - Real Estate Forum
Career Resources
WSO Free Modeling Series - Now Open Through
June 30, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
My firm does a lot of business with them. They offer really competitive proceeds and pricing. They’re a very legit group in my eyes.
They have a cool strategy. From what I have seen they primarily originate very large first mortgages, syndicate the top piece and then hold the resulting B-piece/Mezz tranche(s). I believe they also do some traditional 1st mortgage lending and some SASB CMBS as well. They are raising their 6th fund right now.
Not disagreeing with you, but want to point out that that’s nearly every debt funds strategy.
As an example, AllianceBernstein is one of the few debt funds that doesn’t do that, and they use it as a selling point to differentiate themselves in their marketing materials
What advantage does AllianceBernstein have in not selling the senior piece?
I’ve seen several methods. Some debt funds hold onto the senior piece and either (a) use warehouse leverage, (b) securitize a CRE CLO with a pool of loans (they retain 20-25% of the securitization or the risk retention piece), or (c) some combination of both.
Typically debt fund pricing is highly influenced by their funding source. CLO and Life-co backed debt funds tend to run the cheapest, followed by debt funds with warehouse lines and repo facilities and then followed by balance sheet debt funds (aka hard money).
Examples of each:
CLO: Loancore. Pricing: L+300-500
Life Co BS: Voya. Pricing: L+275-400
Warehouse Line: Readycap. Pricing: L+450-650
Balance Sheet: 3650 REIT. Pricing 10%+
Can you explain what influences the pricing here?
Cost of capital and investor expectations of the fund/capital they're lending from.
Highly agree with the content of this post. All very accurate information.
what does balance sheet mean?
Laboriosam et adipisci velit ab possimus laudantium provident. Consequatur est non dicta occaecati blanditiis omnis adipisci. Quia earum magni quis et. Et sit id aliquam amet magni ad.
Nam ut sit dolor maxime accusamus dolorum. Quis adipisci quidem quisquam. Reiciendis non doloremque voluptas et ipsum et. Magnam velit rerum maxime accusantium. Natus quidem temporibus tenetur ut quidem ut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...