Manulife launches Manulife CQS multi asset credit fund

Manulife launches Manulife CQS multi asset credit fund

Manulife Financial Corporation has announced the launch of its Manulife CQS Multi-Asset Credit Fund, marking a significant expansion into the alternative credit space. The new fund is designed to offer a comprehensive suite of credit solutions to clients, complementing Manulife's existing private market platforms and further diversifying its investment offerings.

The Manulife CQS Multi-Asset Credit Fund will focus on providing flexible financing solutions to middle-market companies. It will offer senior secured, unitranche, and second lien capital to sponsored and non-sponsored companies in support of growth, acquisitions, buyouts, refinancings, and recapitalizations, with credit facilities up to US$300 million-plus [1].

The fund is part of Manulife's broader strategy to enhance its private markets platform by adding differentiated capabilities in private credit. This move aligns with the company's commitment to thoughtfully grow its business and offer a broader range of investment solutions to its institutional, retail, and retirement clients [1].

The launch of the Manulife CQS Multi-Asset Credit Fund follows Manulife's recent acquisition of Comvest Credit Partners, a rapidly growing middle market private credit manager. The acquisition has created a leading US$18.4 billion private credit asset management platform, combining Manulife's existing Senior Credit team and Comvest's expertise in private credit [1].

The new fund will be co-branded as Manulife | CQS Investment Management, positioning the company to offer the full spectrum of credit solutions to clients. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions and approvals [1].

Manulife's existing Senior Credit business and Comvest are highly complementary, given the different areas of the market they focus upon. While Comvest is focused on non-sponsor backed middle market direct lending and other specialty lending, Manulife has built a strong reputation over the last decade serving the private equity sponsor-backed market. These deep sponsor relationships will benefit the aligned platform going forward [1].

The Manulife CQS Multi-Asset Credit Fund is expected to be immediately accretive to core EPS, core ROE, and core EBITDA margin, contributing to the strong growth trajectory of Manulife's broader Global Wealth and Asset Management business [1].

References:
[1] https://www.nasdaq.com/press-release/manulife-acquire-comvest-credit-partners-creating-leading-private-credit-platform