Minnesota-based AB CarVal, a corporate securities services provider and part of investment management firm AllianceBernstein, has announced the final close of CVI Clean Energy Fund II with $1.5B (nearly €1.37B) in capital commitment to the energy transition strategy.
AB CarVal’s inaugural Clean Energy Fund concluded in 2021, secured a total of $490M in funding. This fund closing marks the first since AllianceBernstein’s acquisition of AB CarVal in 2022.
AllianceBernstein is an investment management firm that offers research and investment services to institutional investors, individuals, and private wealth customers in key global markets. Currently, the firm manages an asset portfolio of $692B.
Aim of the CEF II
Fund II will focus on investing in credit and hard assets in the clean energy sector, mainly in North America and Europe. The Fund is a follow-up of AB CarVal’s platform for renewable energy private debt transactions.
Jody Gunderson, managing principal with AB CarVal says, “Rapid growth in renewable energy and a fragmented financing market present a compelling opportunity.”
“The global energy transition is extremely capital intensive, and private investment offers a direct route to participate in projects that are redefining the future of the energy markets and offer solid long-term return potential,” adds Gunderson.
CEF II has garnered support from various investors, including corporate pension funds, sovereign wealth funds, private banks, endowments, foundations, fund of funds, family offices, and HNIs.
United Nations projects a need for $4T annual investments to achieve net-zero emissions by 2050. AB CarVal has been proactive in clean energy investments, deploying over $4B since 2017.
Their investments cover solar and storage hard assets, private financings, solar loans, and solar asset-backed securities (ABS). The firm prioritises downside-protected investments in established new technologies that contribute to the energy transition.
Brief about AB CarVal
AB CarVal claims to specialise in distressed and credit-intensive assets, as well as market inefficiencies.
The firm invests in Europe, Asia and Latin America as opportunities developed from “ever-changing” credit market cycles. Since 1987, AB CarVal has invested $143B in 5,680 deals in 82 countries.
Currently, AB CarVal manages nearly $17B in assets, which include corporate securities, loan portfolios, structured credit, and hard assets.