AllianceBernstein Purchases CarVal to Expand Investment Business

Published on: 21 March 2022 11:35 AM
by KnowESG

AllianceBernstein, a global asset management firm, announced that it acquired CarVal, a global private alternatives investment manager for $750 million. AllianceBernstein will expand its alternative investment business with the acquisition.

CarVal will shift into a wholly-owned subsidiary of AllianceBernstein when the acquisition gets completed in the second quarter of 2022. It will be renamed and known as AB CarVal investors once the purchase is over.

CarVal currently manages $14.3 billion in assets. It will primarily focus on renewable energy infrastructure, opportunistic and distressed credit, speciality finance and transportation investments under the supervision of its senior leadership that will continue to lead the firm even after the acquisition.

The private Alternatives platform of AllianceBernstein gets improved by adding complementary investment capabilities in opportunistic and private credit. The acquisition will expand AB's private market capabilities to have almost $50 billion in assets under management on a pro forma basis.

The acquisition will also expand the current business operation across multiple regions, including North America, Europe, Latin America, and Asia since CarVal operates with 90 employees and 68 investment professionals in five offices in four countries.

AllianceBernstein in a statement said: "Our clients are increasingly looking to private market strategies for return and yield enhancement, as well as diversification and the deal, will augment our position as a market leader."

CEO and president of AB Seth Bernstein said: “This acquisition reflects our firm’s continued commitment to advancing AB’s Private Alternatives business."

“CarVal’s global presence and broad capability set to create new and exciting growth opportunities for AB – diversifying and expanding our services to meet our clients’ evolving needs.”

CarVal Investors managing principal Lucas Detor said: “AB’s leadership, track record, values and platform make it an excellent business partner for CarVal and our investors' long term, aligning in culture, execution and excellence."