Global investment management firm AllianceBernstein has launched the AB CarVal credit opportunities fund (ABAYX), an unlisted closed-end interval fund on September 17, 2024.
The company said the fund seeks to outperform high-yield bonds over time with less volatility and lower correlation to public markets. AB CarVal principal John Withrow and AB CarVal managing director Roger Newkirk will oversee day to day investment decisions, supported by AB CarVal managing principals James Ganley, Jody Gunderson, and Lucas Detor.
"Given the continued evolution in credit markets, we believe this strategy offers unique diversification through a broader set of global investment opportunities," said AB'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."
The fund invests in a mix of public and private credit across the US and Europe including aircraft leasing, specialty finance, and energy transition investments.
Around 11% of the portfolio construction is commercial aircraft leasing. The fund will have a more specific focus on newer aircraft.
As of August 31, 2024, the fund had around $183.9 million in assets.
"This marks another milestone in expanding our private markets platform, which represents more than $64 billion in assets," said AB's head of global client group and head of private wealth Onur Erzan.
Erzan added: "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."
AB acquired CarVal Investors in July 2022, expanding AB's global private markets platform.