AllianceBernstein reported net inflows of $6.6bn (£4.9bn) in the third quarter, its highest quarterly flow result in four years, following “strong” institutional demand across liquid and illiquid credit.

Alternatives and multi-asset strategies (MAS) posted its seventh consecutive quarter of growth, generating $15bn of net inflows in the quarter ended 30 September, including the onboarding of around $12bn of commercial mortgage loans (CML) as highlighted in the prior quarter.

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The US asset manager cited institutional appetite for private assets as the primary growth driver, although its alternatives/MAS franchise grew organically across all three channels, even excluding the CML mandate.

Private markets assets under management (AUM) reached $105bn, up 33 per cent year-over-year, surpassing the upper end of the firm’s 2027 target range.

Total AUM ended the quarter lower, at $900.4bn, down $5.1bn or one per cent, from 30 June 30, as its retail channel saw third quarter net outflows of $8.4bn.

AllianceBernstein ended the quarter with approximately $13bn of institutional pipeline AUM.

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“This reflects an accelerated pace of deployments, as greater operating efficiency continues to shorten the time from commitment to funding,” said Seth Bernstein, chief executive of AllianceBernstein.

“Our results this quarter demonstrate the breadth of AB’s platform as we continued to execute across our key growth vectors: insurance, private markets, SMAs and ETFs. We expanded our private markets platform through the onboarding of EQH’s commercial mortgage loans and continued to scale capabilities across private credit, private placements and asset-based finance,” Bernstein said.

“Insurance capital helps us seed and scale differentiated private market capabilities, which we can then extend across third-party insurance, wealth and retirement. As we strengthen this flywheel, deepen our strategic partnerships and maintain expense discipline, we believe AB is well positioned to deliver durable organic growth and long-term value for clients and unitholders.”

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