AllianceBernstein is expanding its alternative invesment business with the $750 million acquisition of global private alternatives investment manager CarVal Investors.
The acquisition, which is expected to complete during the second quarter of 2022, will see CarVal become a wholly-owned subsidiary of AllianceBernstein and will be rebranded as AB CarVal Investors.
CarVal’s senior leadership team will continue to lead the firm – which currently manages $14.3 billion in assets under management – and will remain primarily focused on opportunistic and distressed credit, renewable energy infrastructure, speciality finance and transportation investments.
AllianceBernstein’s Private Alternatives platform will be enhanced by adding complementary investment capabilities in opportunistic and private credit. The addition of CarVal expands AB’s private markets capabilities to encompass almost $50 billion in assets under management on a pro forma basis.
The purchase also facilitates expansion across multiple geographic regions – including North America, Europe, Latin America, and Asia – as CarVal brings 90 employees, including 68 investment professionals, in five offices across four countries.
The company says its “clients are increasingly looking to private market strategies for return and yield enhancement, as well as diversification” and the deal will “augment the firm’s 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 creates 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.
“This acquisition allows CarVal to grow while retaining our investment and day-to-day independence.”
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