Hadley, who parted methods with the UFC final 12 months after his contract expired, failed to affix Davis as he was overpowered by Alves.
Alves began strongly and by no means regarded again, touchdown plenty of combos to the physique with Hadley utilizing his jab in useless to disrupt the momentum.
The Brazilian exerted extra management within the second spherical, dropping Hadley with a straight proper and opening a minimize beneath his left eye.
Hadley continued to battle with Alves’ energy and the Brazilian stamped his authority on the competition by touchdown a takedown within the remaining minutes.
On the prelims, Eire’s Darragh Kelly prolonged the unbeaten begin to his profession to eight by submitting American light-weight Mike Hamel within the third spherical.
Regardless of some clear pictures from Hamel, Kelly was the higher striker all through earlier than securing a rear-naked choke with two minutes remaining to finish the competition.
Britain’s Fabian Edwards faces American Josh Silveira within the middleweight semi-finals on the Wintrust Area in Chicago, Illinois on 27 June.
Fellow Briton Simeon Powell fights Brazil’s Antonio Carlos Jr within the light-heavyweight semi-finals on the identical card.