AllianceBernstein stands out in the private alternatives space for two main reasons. First its assets under management in that asset class have increased by 500% in 10 years, and second that growth was driven by fostering strong partnerships with insurance companies.
In 2013, AB's private alternative assets under management was $9bn. Over the course of the next 10 years, it has increased that figure to $54bn – a 500% increase. Perhaps more impressive than the overall growth of the alternatives platform is the partnership the company has leveraged with insurers along the way.
The majority of that expansion is directly linked to the company's ability to partner with insurance companies and provide differentiated solutions that fit their risk and return objectives.
Take its latest US commercial real estate(CRE) debt strategy. The fund raise concluded in the second quarter of 2022 with $1.3bn, of which 80% was from insurers. In fact, out of the last five fund raises across its US and European CRE debt strategies dating back to 2013, insurance clients have comprised at least 60% of investor commitments.
As well as organic growth, the asset manager has leveraged inorganic means to help expand its platform.
In July of 2022, AB acquired CarVal Investors, a leading global private alternatives investment manager with approximately $16bn in assets under management, primarily focused on opportunistic and distressed credit, renewable energy infrastructure, specialty finance and transportation investments.
The acquisition represented an important step forward in AB's continued goal of better serving its insurance partners by building and growing a world-class private alternatives business. The addition of CarVal, with 190 employees, including 68 investment professionals, in five offices across four countries, enhanced the platform by adding complementary investment capabilities in opportunistic and private credit and expanding across multiple geographic regions, including North America, Europe, Latin America, and Asia.
For its solid growth and keen focus on insurance, the company wins this year's alternatives manager award.
