CARVAL, a big money buyer for Ireland’s distress loans, is being bought for at least US$750 million (€675 million) by US asset manager AllianceBerntein.
His deal comes just over a month since US-based CarVal closed its latest acquisition, paying 1.1 billion euros for KBC Bank of Ireland’s non-performing loans as part of a Belgian lender’s withdrawal from the Irish market.
That portfolio is a mix of personal mortgages and buy-to-let investment loans that KBC has managed since the financial crisis until its decision to exit the Irish market in last year.
KBC’s loan book is in addition to approximately €1.6 billion in Irish hardship loans previously purchased by CarVal in previous transactions, mainly between the end of the euro crisis and 2013 and Ireland’s economic recovery really started to pick up. two years later.
CarVal’s acquisitions here include a mix of distressed mortgages from retail lenders that left the market after the financial crisis, such as Lloyds – Bank of Scotland Ireland , as well as books of hard commercial real estate loans purchased from banks, including the liquidation of IBRC, the former Irish Anglo Bank.
While many of the previous loan books will be processed and resold to date, Irish assets still represent a significant portion of the $14.3 billion in assets CarVal manages globally.
That total is a combination of opportunity and hardship credit, renewable energy infrastructure, specialty financing and investments in transportation.
CarVal has 190 employees including 68 investment professionals in 5 offices in 4 countries.
The company recruited a number of Irish bankers in the wake of the financial crisis including Bobby O’Brien, who previously served as a senior executive on the company’s property and business loan restructuring team. Bank of Ireland and before that at UBS and Goodbody and is now responsible for management and sourcing. invest in the European loan portfolio at CarVal.
AllianceBerntein said the purchase of CarVal brings additional private market capabilities to the existing private alternatives business and will enhance the company’s position as a market leader.
The company said that CarVal’s senior leadership team will continue to lead the company, and CarVal’s teams will remain independent with no changes to the current investment or staffing process, the company said. know.
It added that the deal would benefit from AB’s broader resources, including global distribution and product development.
AllianceBerntein will purchase 100pc of CarVal for an upfront purchase price of $750 million plus multi-year earnings if certain targets are met.
CarVal was founded in 1987 by commodity trader Cargill and was formerly known as Cargill Value Investors. It became employee-owned in 2019.
Bloomberg reports that the deal comes as credit managers become targets of financial services giants. LIVE
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