Manulife Financial Acquires Comvest to Enhance Private Credit Platform and Asset Management
- Manulife Financial acquires 75% of Comvest Credit Partners for US$937.5 million, enhancing its private credit platform.
- The acquisition boosts Manulife's asset management to approximately US$18.4 billion in private credit assets.
- Manulife aims to provide tailored financing solutions and deliver strong returns through Comvest's expertise in private credit.
Manulife Financial Strengthens Private Credit Platform with Acquisition of Comvest Credit Partners
Manulife Financial Corporation announces a significant strategic move to enhance its private credit market presence by acquiring a 75% stake in Comvest Credit Partners for US$937.5 million. This acquisition is poised to create a comprehensive private credit asset management platform, co-branded as Manulife | Comvest, significantly increasing Manulife's asset management capabilities. The combined entity will manage approximately US$18.4 billion in private credit assets, integrating Manulife's existing US$3.7 billion Senior Credit team with Comvest’s robust operations, which oversee US$14.7 billion in assets.
Phil Witherington, President and CEO of Manulife, emphasizes that this acquisition not only strengthens the company’s private markets platform but also enhances its ability to provide tailored financing solutions to middle-market businesses that are often neglected by traditional lenders. The partnership with Comvest is expected to yield attractive risk-adjusted returns for investors while enhancing core earnings per share (EPS) and return on equity (ROE). Paul Lorentz, President and CEO of Manulife Wealth and Asset Management, expresses optimism regarding the growth potential of private credit as an asset class, highlighting Comvest's skilled investment team as a valuable addition to Manulife’s offerings.
This acquisition aligns with Manulife’s broader strategy to expand its capabilities thoughtfully and provide a diverse range of financial solutions to its institutional, retail, and retirement clients. By integrating Comvest's unique expertise in private credit, Manulife aims to bolster its competitive position in the financial services sector, underscoring its commitment to disciplined credit management and a client-centric approach. As the demand for private credit continues to rise, this strategic move positions Manulife favorably for future growth in a rapidly evolving market landscape.
In addition to the acquisition, Manulife John Hancock Investments marks a milestone with the launch of the John Hancock Disciplined Value Select ETF, expanding its ETF suite to a total of 17 funds. This new product aims to offer long-term capital growth through a concentrated portfolio of high-conviction stocks, reflecting Manulife's commitment to providing diversified investment strategies. The firm also announces a quarterly dividend of C$0.44 per share for common shareholders, reinforcing its dedication to returning value to its investors while maintaining a solid financial foundation.