AB CarVal Collects $1.5B for Clean Energy Fund

AB CarVal, a part of AllianceBernstein’s Private Alternatives business, closed of its second clean energy fund, CVI Clean Energy Fund II, with $1.5 billion in capital commitments

The fund invests in credit and hard asset investments in the clean energy sector, primarily in North America and Europe. The aim is to capitalize on credit opportunities in clean energy, renewable energy and energy storage space.

Investors include the New York State Common Retirement Fund. The public pension system’s allocation was to the CVI Excelsior Opportunities Fund, which is a separately managed account that invests alongside the CVI Clean Energy Fund B II.

The fund is a continuation of AB CarVal’s platform for renewable energy private debt transactions. Since 2017, AB CarVal has deployed over $4 billion in clean energy investments, including solar and storage hard assets, private financings, solar loans and solar asset-backed securities.

“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,” said Jody Gunderson, managing principal with AB CarVal.

Minneapolis-based AB CarVal was acquired by AB in a 2022 deal that followed the close of the first CVI Clean Energy Fund at nearly $500 million.

The firm currently manages approximately $17 billion in assets under management.