Investment firm AllianceBernstein (AB) has announced it will acquire CarVal Investors (CarVal).
AB has announced a definitive agreement to purchase 100 percent of CarVal for an upfront purchase price of $750 million, and a multi-year earnout if certain targets are reached.
The deal is expected to close in the second quarter of 2022, CarVal will become a wholly owned subsidiary of AB.
CarVal is a global private alternatives investment manager with approximately $14.3 billion in AUM, primarily focused on opportunistic and distressed credit, renewable energy infrastructure, specialty finance and transportation investments.
The addition of CarVal, with 190 employees, including 68 investment professionals, in five offices across four countries, enhances AB’s private alternatives platform by adding complementary investment capabilities in opportunistic and private credit and expanding across multiple geographic regions, including North America, Europe, Latin America, and Asia.
AB said as clients increasingly look to private market strategies for return and yield enhancement, as well as diversification, CarVal brings complementary private markets capabilities to AB’s private alternatives business. The addition of CarVal now expands AB’s private markets capabilities to encompass almost $50 billion in AUM on a pro forma basis.
CarVal’s senior leadership team will continue to lead the firm. CarVal’s teams will remain independent, continuing to operate from its Minneapolis, Minnesota, headquarters and offices around the world, with no change to the current investment process or personnel, and will benefit from AB’s broader resources, including global distribution and product development.
“This acquisition reflects our firm’s continued commitment to advancing AB’s Private Alternatives business,” said chief executive and president of AB Seth Bernstein. “CarVal’s global presence and broad capability set creates new and exciting growth opportunities for AB – diversifying and expanding our services to meet our clients’ evolving needs.”
“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,” said CarVal Investors managing principal Lucas Detor. “This acquisition allows CarVal to grow while retaining our investment and day-to-day independence.”
