AllianceBernstein L.P. and AllianceBernstein Holding L.P. (AB), a research and global investment firm, announced Thursday that it will acquire 100 percent of private alternatives investment manager CarVal Investors L.P. for an upfront purchase price of $750 million, and a multi-year earnout if certain targets are reached.
The acquisition represents an important step forward in AB’s continued goal of better serving its clients by building and growing its world-class Private Alternatives business.
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.
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.
At the transaction closing, expected to occur in the second quarter of 2022, CarVal will become a wholly owned subsidiary of AllianceBernstein L.P. and will be rebranded as AB CarVal Investors. The transaction is subject to customary regulatory and closing conditions.
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