AllianceBernstein’s AB CarVal unit held the final close of its second clean energy fund with $1.5 billion in capital commitments.
The CVI Clean Energy Fund II (CEF II) invests in credit and hard asset investments in the clean energy sector, primarily in North America and Europe.
Investors in this strategy 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 aim is to capitalize on credit opportunities in clean energy, renewable energy and energy storage space.
CEF II is a continuation of AB CarVal’s platform for renewable energy private debt transactions. The unit has put $4 billion to work across solar and storage hard assets, private financings, solar loans and solar asset-backed securities. Company officials say they are focused on proven new technologies that help the energy transition.
“Rapid growth in renewable energy and a fragmented financing market present a compelling opportunity,” said Jody Gunderson, managing principal with $17 billion AB CarVal. “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.” Minneapolis-based CarVal Investors was acquired by AllianceBernstein in a 2022 deal that followed the close of the first CVI Clean Energy Fund at $500 million.