For many financial institutions, from banks to hedge funds, the financial crisis of 2008 spelled extinction. But for distressed investors, such as CarVal Investors, the tumultuous markets presented an opportunity. As banks sold off assets to meet stringent new capital rules, the Minnesota-based firm snapped them up and made a killing. In November 2012, CarVal acquired a portfolio of non-performing Irish property loans from Lloyds Banking Group during Lloyds' transition out of the Irish market. The Irish banking market was pummeled by the financial crisis, prompting many banks, including Lloyds, to withdraw. By year-end, three of CarVal's core funds were posting double-digit returns…