CarVal Closes Third Credit Fund With $3B in Commitments

Jul 1 2015 | 2:37pm ET

Global alternative investment manager CarVal Investors has announced the final close of its third fund with $3 billion in commitments.  

The new fund, named CVI Credit Value Fund III, will investing in undervalued opportunities with a strong focus on portfolios of whole loans coming out of the deleveraging of European banks, according to a company statement. It will also invest in corporate securities, liquidation claims and structured credit.

The company noted support from 83 institutional investors, including a diverse range of public and private pension plans, endowments, foundations, family offices and corporate investors.

 “We were very pleased with the strong reception to our latest credit offering and value the trust our investors have placed in us,” said John Brice, president and chief investment officer of CarVal Investors. “CVF III is carrying forward a similar investment strategy as CVI Credit Value Funds I and II, investing across our core credit strategies or ‘four boxes’ of loan portfolios, corporate securities, liquidations and structured credit.

"However, given the continuing opportunities in European deleveraging, CVF III is more heavily weighted in loan portfolios out of the gate,” Brice added. “We expect to balance this with corporate securities and structured credit opportunities during the second half of the investment period as the recovery ends and the dislocation of the next market cycle begins.”

CarVal Investors was founded by Cargill in 1987 as an arm of the food & agricultural company’s proprietary financial trading operation. The New York-based alternative asset manager focused on distressed and credit-intensive assets and market inefficiencies, opportunistically investing more than $81 billion in 5,300 transactions across 71 countries.

CarVal became independent in 2006 and now manages $10 billion in assets in both credit and real estate strategies. 

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