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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001193125-06-235153.txt : 20061114
<SEC-HEADER>0001193125-06-235153.hdr.sgml : 20061114
<ACCEPTANCE-DATETIME>20061114173011
ACCESSION NUMBER:		0001193125-06-235153
CONFORMED SUBMISSION TYPE:	FWP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20061114
DATE AS OF CHANGE:		20061114

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALESCO FINANCIAL INC
		CENTRAL INDEX KEY:			0001270436
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				161685692
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-138136
		FILM NUMBER:		061217132

	BUSINESS ADDRESS:	
		STREET 1:		CIRA CENTRE, 2929 ARCH STREET
		STREET 2:		17TH FLOOR
		CITY:			PHILADELPHIA
		STATE:			PA
		ZIP:			19104
		BUSINESS PHONE:		215-701-9555

	MAIL ADDRESS:	
		STREET 1:		CIRA CENTRE, 2929 ARCH STREET
		STREET 2:		17TH FLOOR
		CITY:			PHILADELPHIA
		STATE:			PA
		ZIP:			19104

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SUNSET FINANCIAL RESOURCES INC
		DATE OF NAME CHANGE:	20031117

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALESCO FINANCIAL INC
		CENTRAL INDEX KEY:			0001270436
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				161685692
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP

	BUSINESS ADDRESS:	
		STREET 1:		CIRA CENTRE, 2929 ARCH STREET
		STREET 2:		17TH FLOOR
		CITY:			PHILADELPHIA
		STATE:			PA
		ZIP:			19104
		BUSINESS PHONE:		215-701-9555

	MAIL ADDRESS:	
		STREET 1:		CIRA CENTRE, 2929 ARCH STREET
		STREET 2:		17TH FLOOR
		CITY:			PHILADELPHIA
		STATE:			PA
		ZIP:			19104

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SUNSET FINANCIAL RESOURCES INC
		DATE OF NAME CHANGE:	20031117
</SEC-HEADER>
<DOCUMENT>
<TYPE>FWP
<SEQUENCE>1
<FILENAME>dfwp.htm
<DESCRIPTION>FREE WRITING PROSPECTUS
<TEXT>
<HTML><HEAD>
<TITLE>Free Writing Prospectus</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Filed pursuant to Rule 433 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
FACE="Times New Roman" SIZE="2">Registration Statement No.&nbsp;333-138136 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">November&nbsp;14, 2006 </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Free Writing Prospectus </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ALESCO FINANCIAL INC.
</B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>This free writing prospectus should be read together with the preliminary prospectus supplement and accompanying prospectus dated November&nbsp;3,
2006 that form a part of the Registration Statement on Form S-3 (File No.&nbsp;333-138136) of Alesco Financial Inc. (collectively, the &#147;preliminary prospectus&#148;). The preliminary prospectus can be accessed through the following link
<A HREF="http://www.sec.gov/Archives/edgar/data/1270436/000119312506224342/d424b3.htm">http://www.sec.gov/Archives/edgar/data/1270436/000119312506224342/d424b3.htm</A>. The following information supplements and updates the information contained in
the preliminary prospectus. </I></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Directed Shares </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">At our request, the underwriters have reserved for sale, at the public offering price, up to 286,000 shares, or 1.3% of the total number of shares offered by the preliminary prospectus, to certain of our senior
executive officers and directors and senior officers of Cohen Brothers LLC, an affiliate of our external manager, Cohen&nbsp;&amp; Company Management LLC. This amount includes shares having an aggregate purchase price of up to $1.0 million, based
upon the public offering price, that will be reserved for purchase by our Chairman, Daniel G. Cohen. The number of shares available for sale to the general public will be reduced to the extent these persons purchase the reserved shares. Any reserved
shares that are not orally confirmed for purchase within one day of the pricing of this offering contemplated by the preliminary prospectus will be offered by the underwriters to the general public on the same terms as the other shares offered by
the preliminary prospectus. The persons who purchase reserved shares have agreed, with certain limited exceptions, not to sell or transfer any common stock or securities exchangeable convertible into, exchangeable for, exercisable for or repayable
with our common stock for 180 days after the date of the final prospectus relating to the offering. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"> <P
STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Alesco Financial Inc., the issuer, has filed a registration statement (including a prospectus) and a preliminary prospectus supplement with the Securities and Exchange
Commission, or SEC, for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and the preliminary prospectus supplement and other documents the issuer has filed with the
SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at <U>www.sec.gov</U>. Alternatively, Merrill Lynch&nbsp;&amp; Co will arrange to send you the
prospectus and the preliminary prospectus supplement if you request it by calling toll free 1-866-500-5048. </I></FONT></P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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