Financial giant Manulife set to acquire Comvest Credit Partners, a move aimed at bolstering its credit management capabilities.
Manulife Financial Corporation has announced a strategic move to acquire 75% of Comvest Credit Partners, a rapidly growing private credit manager with US$14.7 billion on its platform. This transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions and approvals.
Strengthening Presence in the Middle Market Direct Lending Space
The acquisition aligns Manulife’s $3.7 billion senior credit team with Comvest’s $14.7 billion AUM, significantly expanding Manulife's presence in the middle market direct lending private credit space. Comvest, focused on non-sponsor backed middle market direct lending and other specialty lending, will complement Manulife's existing public market alternative credit platform, Manulife | CQS Investment Management.
Immediate Accretion to Core Earnings
The transaction is expected to be immediately accretive to Manulife's core EPS, core ROE, and core EBITDA margin. This financially attractive transaction will boost the company’s earnings from high-potential business segments.
Full Autonomy for Comvest Investment Professionals
For Comvest’s investment professionals, the deal allows the firm to maintain full operational and investment autonomy with no changes to leadership or investment processes. Robert O'Sullivan, Co-Founder and CEO of Comvest, will be appointed Head of the newly aligned business and will report directly to Anne Valentine Andrews, Global Head of Private Markets, joining the Private Markets Executive Committee. Michael Falk, Founder of Comvest, will serve as Senior Advisor and Board Member in the new Manulife | Comvest private credit platform.
Expanded Platform and Resources for Comvest
The partnership will provide Comvest with an expanded platform and resources, enabling the firm to increase its capital and scale. Comvest’s senior management will continue to lead the business, and partners are increasing personal commitments to current and future Comvest funds, aligning incentives with performance and growth.
Legal Advisors and Funding
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Manulife on the transaction. The transaction will be funded entirely with cash on hand, resulting in less than a 3-point reduction to Manulife's LICAT ratio.
Performance-Based Additional Consideration
Comvest will be eligible for additional consideration of up to US$337.5 million, contingent on achieving certain performance targets. The agreement provides Manulife the ability to purchase the remaining 25% through a put/call mechanism.
Co-Branded Platform
The acquisition creates a leading US$18.4 billion private credit asset management platform, which will be co-branded as Manulife | Comvest. This partnership is expected to close in the fourth quarter of 2025 and is a significant step towards Manulife's goal of building a leading private credit asset management platform.
[1] Manulife Financial Corporation Press Release [2] Comvest Credit Partners Press Release [3] Financial Post Article [4] Reuters Article
- The strategic acquisition of Comvest Credit Partners by Manulife Financial Corporation will significantly expand Manulife's presence in the middle market direct lending private credit space, strengthening its position in this business sector.
- The transaction, which will be immediately accretive to Manulife's core earnings, aims to boost the company’s earnings from high-potential business segments, such as finance and investing.
