Manulife Financial Corp. will acquire a 75% stake in Comvest Credit Partners for $937.5 mn, a move aimed at expanding its private credit platform.
The agreement values Comvest at $1.25 bn, with up to $337.5 mn in additional performance-based payments. Manulife retains the option to purchase the remaining 25% through a put and call arrangement.
Comvest manages $14.7 bn in direct-lending private credit, targeting the middle market with a focus on non-sponsor backed loans and specialty lending.
Manulife plans to align its $3.7 bn senior credit team with Comvest, creating an $18.4 bn private credit asset-management business under the brand Manulife Comvest.
The combined platform will integrate Comvest’s origination and underwriting capabilities with Manulife’s global distribution and institutional relationships, particularly in Asia.
Paul Lorentz, president and CEO of Manulife Wealth and Asset Management, said the acquisition will be immediately accretive. Speaking during the company’s second-quarter earnings presentation, Lorentz highlighted the rising demand for private assets and the opportunity to scale across retail, retirement, institutional, and insurance channels.
Michael Falk, Comvest’s founder, will join as senior advisor and board member, providing strategic guidance. Co-founder and CEO Robert O’Sullivan will lead the new entity, reporting to Anne Valentine Andrews, Manulife’s global head of private markets.
Manulife expects the transaction to close in the fourth quarter, pending regulatory approvals and customary conditions. Morgan Stanley & Co. is acting as exclusive financial adviser, and Skadden, Arps, Slate, Meagher & Flom is serving as legal counsel.
The acquisition announcement coincided with Manulife’s second-quarter earnings report. Net income attributable to shareholders reached $1.3 bn, a 72% increase from the prior year, driven by stronger results in Asia and Canada, as well as its global wealth and asset management operations.
Gains came from higher-than-expected returns on public equities, derivative profits, and favorable market conditions.
In Asia, quarterly net income climbed 44% to $600 mn. New annualized premium equivalent sales reached $1.23 bn, up 31%, while new business contractual service margin rose 34% to $480 mn.
