ACORE Capital Closes Second Opportunistic Credit Fund at $1.1 Billion, Above $1 Billion Target

NEW YORK — ACORE Capital announced Oct. 29 the final close of ACORE Opportunistic Credit II (AOC II), its second dedicated fund for opportunistic credit investments, with $1.1 billion of commitments. The total exceeded the fund's $1 billion target by $100 million, or 10%.

The New York-based commercial real estate investment manager said AOC II closed at more than four times the size of its predecessor, ACORE Opportunistic Credit I.

ACORE Capital's Opportunistic Credit Fund by the Numbers

AOC II has committed $400 million of capital across 14 deals to date, an average of roughly $28.6 million per transaction. The fund's commitments to date represent about 36% of its total capital.

Since its founding in 2015, ACORE Capital has committed $1.34 billion of capital into opportunistic credit investments. The firm launched its Opportunistic Credit strategy in 2020 with ACORE Opportunistic Credit I, building on its existing real estate credit platform, underwriting expertise and borrower relationships to pursue potentially higher-yielding opportunities across the commercial real estate market.

ACORE Capital, LP had more than $17 billion of assets under management as of June 30, 2026. The firm is headquartered in New York, with offices in Los Angeles, Miami, San Francisco and Dallas. It originates, acquires and manages commercial real estate credit and select equity investments on behalf of institutional investors globally and high-net-worth investors in the U.S.

Executives Cite Market Dislocation and Investor Demand

"For more than a decade, we have built our business around the ability to navigate market cycles, identify where capital is most needed and deploy it with discipline," said Warren de Haan, Chief Executive Officer and Co-Founder of ACORE Capital. "At a moment of significant dislocation across commercial real estate, we believe our experience, relationships and capabilities position us to capitalize on the market opportunity and continue delivering for our investors."

De Haan added that the demand for AOC II is "a powerful endorsement of both the investment case for opportunistic real estate credit and the platform we have built at ACORE."

Michael Romo, Partner and Head of Global Investor Group at ACORE Capital, said the support from "a diverse group of institutional investors reflects the confidence in our team, our platform, and the opportunity we see ahead." He said the firm would continue to "draw on our expertise, relationships and disciplined investment approach to deliver results on behalf of our growing investor community."

Matthew Drummond, Senior Managing Director and Head of High Yield Strategies at ACORE Capital, pointed to a "significant basis re-set across many asset classes that provides an attractive opportunity to finance business plans that can take advantage of today's discounted valuations." He said that in an uncertain capital markets and interest rate environment, institutional equity investors remain very selective. Using ACORE Capital's origination network and structuring expertise, Drummond said the firm sees an opportunity "to generate equity-like returns at a more senior position in the capital structure."

Market Backdrop for Opportunistic Real Estate Credit

The fundraising comes as commercial real estate borrowers face higher base rates, refinancing challenges and declining asset values. The 10-year Treasury yield has remained near or above 5% since Sept. 10, 2026, while the average commercial real estate cap-rate spread to the Treasury has compressed to approximately 160 basis points, well below its long-run average of about 325 basis points, according to CBRE.

CBRE expects cap rates to rise another 40 to 60 basis points in the near term, which it indicates could reduce average property values by approximately 6% to 10%. The firm identified multifamily and industrial assets as vulnerable to valuation adjustments, and noted that Sun Belt multifamily faces both a supply overhang and upcoming debt maturities.

Conditions of this kind can create demand for lenders able to provide bridge, transitional or rescue financing, including for borrowers facing maturing loans, basis resets, construction and redevelopment funding needs, or limited availability of institutional equity. ACORE Capital's stated approach for AOC II is to finance business plans backed by discounted valuations while seeking equity-like returns from a more senior position in the capital structure.

What the Close Signals

The AOC II close is a fundraising announcement rather than a property transaction. The size of the fund relative to its predecessor indicates institutional investor appetite for real estate credit exposure as an alternative or complement to traditional property equity strategies. ACORE Capital's opportunistic strategy commitments include prior pool investment vehicles and other investments with a substantially similar investment strategy and criteria.

The firm's release noted that all investments involve a degree of risk, including a risk of loss.

Sources

• ACORE Capital press release: ACORE CAPITAL Closes Second Opportunistic Credit Fund Above Target with $1.1 Billion of Commitments