AllianceBernstein launches credit opportunities interval fund
AllianceBernstein has launched an interval fund that will invest in a mix of public and private credit across the US and Europe.
The AB CarVal Credit Opportunities Fund is an unlisted, closed-end interval fund that will seek to outperform high-yield bonds over time with less volatility and lower correlation to public markets.
The fund will focus on areas including aircraft leasing, specialty finance, and energy transition investments.
“Given the continued evolution in credit markets, we believe this strategy offers unique diversification through a broader set of global investment opportunities,” said the asset manager’s head of private alternatives Matthew Bass. “The AB CarVal Credit Opportunities Fund represents an important addition to AB’s ultimate goal of helping clients navigate the many complexities of the current market environment through AB CarVal’s global sourcing, origination capabilities, and innovative vehicles.”
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AllianceBernstein acquired alternative asset manager CarVal Investors in July 2022, expanding its global private markets platform.
The merged alternatives business – AB CarVal – now has around $16bn (£12.1bn) in assets under management in corporate securities, loan portfolios, structured credit and hard assets.
AB CarVal principal John Withrow and AB CarVal managing director Roger Newkirk will oversee day to day investment decisions for the new credit opportunities fund, supported by AB CarVal managing principals James Ganley, Jody Gunderson, and Lucas Detor.
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“This marks another milestone in expanding our private markets platform, which represents more than $64bn in assets,” said AllianceBernstein’s head of global client group and head of private wealth Onur Erzan. “Today’s announcement illustrates the firm’s commitment to our expansive evergreen solutions for our global clients. Historically, this strategy has been limited to only institutional clients; that changes today with this vehicle as it is now available to individual investors with low minimums, providing easy access to a differentiated diversified credit solution.”
AllianceBernstein has $791bn in assets under management, as of 31 August 2024.
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Dechert served as legal adviser to AllianceBernstein on the deal. The Dechert team was led by financial services partners William J. Bielefeld, Matthew E. Barsamian and Alexander Karampatsos.
