Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right
Tap on the profile icon to edit
your financial details.

CarVal Investors Review

Your Details Done
by Updated

This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

CarVal Investors, LP is a large hedge fund manager located in Minneapolis, Minnesota. With 68 financial Advisors, the firm has more than $17.7 billion in assets under management spread across 61 pooled investment vehicles or funds. CarVal Investors focuses on loan portfolios, corporate securities, structured credit, hard assets, as well as undervalued assets. 

Only accredited investors who satisfy specific net worth or income requirements have access to hedge funds. If you don’t qualify as an accredited investor, you still may want to work with a financial advisor who can help manage your investment portfolio. 

CarVal Investors Background

CarVal Investors was founded in 1987 by Cargill, the global food corporation also based in Minnesota. In 2006, the firm became an independent subsidiary of Cargill and separated from the conglomerate entirely in 2019 when CarVal’s senior management team bought out Cargill’s ownership interest in the firm.

CarVal Investors is led by a trio of managing principals: Lucas Detor, James Ganley and Jody A. Gunderson. The firm, which also has offices in Europe and Asia, works with institutional investors and accredited investors. Approximately 18% of CarVal-managed funds investors come from outside the U.S.

CarVal Investors Investment Philosophy

CarVal-managed funds invest in corporate securities, structured credit, hard assets and loan portfolios, including residential mortgages, small business loans, and other consumer, commercial and industrial obligations. CarVal Investors also focuses on special opportunity investments, which may be a variety of undervalued situations across a broad spectrum of asset categories. 

The firm targets what it calls “capital vacuums” of illiquidity and “orphaned” assets on the balance sheets of financial institutions. Additionally, CarVal-managed funds may require investors to commit capital for a set period of time, ranging from six months to eight years, depending on the investment vehicle. 

Largest Hedge Funds Managed by CarVal Investors

CVI CVF IV Master Fund II LP

AUM: $3,776,424,635
Minimum: $10 million
Beneficial Owners: 140


AUM: $1,904,607,259
Minimum: $10 million
Beneficial Owners: 113

CVIC Master Fund LP

AUM: $1,418,287,381
Minimum: $5,000,000
Beneficial Owners: 266

CVI AA Master Fund II LP

AUM: $903,289,436
Minimum: $5,000,000
Beneficial Owners: 26

CVI CVF V Pooling Fund II LP

AUM: $570,236,579
Minimum: $10,000,000
Beneficial Owners: 202

Fees at CarVal Investors

CarVal charges its funds both management and performance-based fees. Management fees range from 1% to 2.5%, although the fees associated with each fund may vary and are described in the fund’s offering documents. 

The firm also charges its funds performance-based fees, which typically equal 20% of the net profits of a fund. The firm acknowledges that performance-based fees may incentivize riskier investments that would generate higher performance-based compensation. As a result, the firm requires senior employees to invest their own money in each of its commingled funds.

What to Watch Out For

CarVal Investors does not have any disclosures listed on its Form ADV, uniform documentation mandated by the Securities and Exchange Commission. A disclosure can be any past regulatory, criminal or disciplinary action on a firm’s record. 

As noted earlier, investing in hedge funds is not for everyone. To be an accredited investor, you must have a net worth of over $1 million -- not including your primary residence -- or $200,000 of earned income in each of the last two years ($300,000 for couples).

Becoming a Client of CarVal Investors

If you qualify as an accredited investor and wish to invest in funds managed by CarVal Investors, contact the firm directly through its website,, or by calling over the phone, at +1 952 444 4780.

All information is accurate as of the time of this article. 

Tips for Investing

  • Regardless of your income or net worth, we can all use some professional advice from time to time. Consider speaking with a local financial advisor about how they may help you meet your financial goals. Use SmartAsset’s free matching tool to find up to three financial advisors in your area in just five minutes. If you’re ready, get started now
  • Knowing the potential tax consequences of selling assets in your portfolio is an important consideration for any investor. Use SmartAsset’s capital gains calculator to find out how much you might owe. 

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research