AllianceBernstein is to acquire CarVal Investors L.P., a private alternatives investment manager with around $14.3bn (€12.95bn) in assets under management, for an upfront purchase price of $750m.
This would be complemented by a “multi-year earnout if certain targets are reached”.
On a pro forma basis the acquisition would take AB’s private markets capabilities to encompass almost $50bn in assets under management, AB said.
CarVal is primarily focussed on opportunistic and distressed credit, renewable energy infrastructure, speciality finance and transportation investments.
It has 190 employees, including 68 investment professionals, in five offices across four countries. Its headquarters are in Minneapolis, Minnesota.
AB said the addition of CarVal “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”.
It also said the agreement to acquire CarVal was “an example of the unique synergies between Alliance Bernstein and Equitable”, with Equitable committing to deploy $10bn in investment capital from its general account towards AB’s private alternatives platform.
Of the commitment, $750m will be allocated across targeted CarVal strategies.
Columbia Threadneedle brand to replace BMO GAM (EMEA) in July
BMO GAM (EMEA) became part of Columbia Threadneedle Investments in November 2021 on completion of the acquisition by Ameriprise Financial.
Aligned with the removal of the BMO name and brand, the BMO fund ranges will be renamed with the prefix CT, reflecting the Columbia Threadneedle branding.
The intention is for the Threadneedle-named fund range to also transition to the CT prefix over time from July, providing consistency across the combined open-ended retail fund ranges in Europe, the Middle East and Asia Pacific.
The naming convention for the Columbia funds range in the US remains the same.
“Bringing all products and capabilities under our established global brand this summer will be an exciting point in the integration,” said Nick Ring, chief executive officer, EMEA at Columbia Threadneedle Investments.
“The strong cultural fit between Columbia Threadneedle and BMO GAM (EMEA) was an important consideration in the acquisition and will be further strengthened as we come together under the Columbia Threadneedle brand.”