AllianceBernstein buying investment manager for at least $750M – Nashville Post

Nashville-based global asset management firm AllianceBernstein on Thursday announced the acquisition of CarVal Investors for $750 million up front plus future payouts depending on performance.

CarVal will maintain its Minneapolis headquarters and leadership team. The company includes 190 employees, among them 68 investment professionals. CarVal has five offices in four countries and focuses on distressed credit, renewable energy infrastructure, specialty finance and transportation investments. The company has more than $14 billion in assets under management.

The transaction is expected to close in the second quarter, at which time CarVal will become a wholly owned subsidiary of AllianceBernstein. The future division will be called AB CarVal Investors.

AB worked with Citi as financial adviser and Wachtell, Lipton, Rosen & Katz as legal counsel. CarVal tapped Rothschild & Co. as financial adviser and Schulte Roth & Zabel as legal counsel.

Company leadership is hosting a call Thursday morning to discuss the deal.

“This acquisition reflects our firm’s continued commitment to advancing AB’s Private Alternatives business,” AB CEO and President Seth Bernstein said in a release. “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.”

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