AllianceBernstein (AB) to Acquire CarVal Investors for $750M

AllianceBernstein Holding L.P. AB announced that it would acquire CarVal Investors L.P., a global private alternatives investment manager with $14.3 billion in assets under management (AUM).

AB will acquire CarVal for an upfront purchase price of $750 million, along with a multi-year earnout if specific targets are reached. The transaction is expected to close in second-quarter 2022, subject to customary regulatory and closing conditions, post which CarVal will become a wholly-owned subsidiary of AllianceBernstein L.P. and will be rebranded as AB CarVal Investors.

CarVal primarily focused on opportunistic and distressed credit, specialty finance, renewable energy infrastructure and transportation investments. The buyout will aid AB to leverage the former to grow its world-class Private Alternatives business.

It will strengthen the Private Alternatives platform by adding complementary investment capabilities in opportunistic and private credit, and fortifying presence across numerous geographic regions like North America, Europe, Latin America and Asia.

The focus on these enhancements will enable AB to tap on the ongoing demand for such strategies for return and yield enhancement, and diversification. CarVal brings complementary private market capabilities to AB's Private Alternatives business and augments the firm's position as a market leader. Also, the addition of CarVal will expand AB's private markets competencies to encompass almost $50 billion in AUM on a pro-forma basis.

Management noted, "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."

Over the past year, shares of the company have rallied 11.3% against a 10.7% decline of the industry.

Image Source: Zacks Investment Research

Currently, AllianceBernstein carries a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Inorganic Moves by Other Finance Companies

MVB Financial Corp. MVBF announced the execution of an agreement to acquire a 38% interest in Warp Speed Holdings LLC for $48 million. Closing of the investment, expected in mid-2022, is subject to the receipt of required regulatory approvals and other customary closing conditions.

The total investment value will comprise $38.4 million in cash and $9.6 million in MVB Financial’s common stock. The number of shares issued will be based on the volume weighted average closing price of MVBF common stock for 20 trading days ending the day prior to the closing date.

First Horizon Corporation FHN and TD Bank Group TD signed a definitive agreement, wherein the latter will acquire FHN in an all-cash deal valued at $13.4 billion or $25 for each FHN common share.

TD anticipates the FHN acquisition to close by Nov 1, 2022. The buyout is subject to customary closing conditions, including approvals from First Horizon's shareholders, and the United States and Canada regulatory authorities.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.