It was started in 2005 by Eduardo Montealegre and other members of the Constitutional Liberal Party (Partido Liberal Constitucionalista – PLC) who opposed former President of the country Arnoldo Alemán's continued control of the PLC even after he had been found guilty of misuse of public funds, and was sentenced to 20 years in prison.

Montealegre also opposed the political alliance, commonly referred to as 'El Pacto', between Alemán as head of the PLC and Daniel Ortega, head of the Sandinist National Liberation Front (Frente Sandinista de Liberación Nacional – FSLN).

The Nicaraguan Liberal Alliance is now recognized by the acronym ALN-PC.

The vice-presidential candidate for the ALN-PC was Fabricio Cajina, formerly a member of the FSLN.

At the 2006 elections, the ALN-PC candidate Eduardo Montealegre came in second place with 28% of the vote, too far behind the winner, FSLN candidate Daniel Ortega, to qualify for a runoff under the Nicaraguan election system.