Manulife IM completes acquisition of alternative credit firm

The deal enhances Manulife's capabilities in the alternative credit space

Manulife IM completes acquisition of alternative credit firm
Steve Randall

Manulife Investment Management has completed the acquisition of alternative credit management firm CQS following approval by the U.K. Financial Conduct Authority.

The deal, for which terms have not been disclosed, was first announced in November 2023 and its completion means that Manulife owns 100% of CQS which operates across multiple sectors and has a 20-year history of managing research-driven credit strategies over multiple market cycles.

Manulife says the addition of CQS will help it expand its capabilities in the global wealth and asset management industry and provide income solutions across the credit spectrum to retail, institutional and retirement investors.

"With this acquisition, Manulife Investment Management is well-positioned to capitalize on the increased investor interest in alternative credit and accelerate the growth of our global business. We are excited to complete this strategic acquisition because of the tremendous opportunity to serve retail, retirement, and institutional investors more deeply and unlock growth for our clients," said Paul Lorentz, president and CEO, Manulife Investment Management. "Many investors are looking to increase their exposure to fixed income within their portfolios by adding more sophisticated strategies within this asset class, and we are pleased to expand our offering in this space."

Where permitted, Manulife will operate its new unit under the dual-brand Manulife CQS Investment Management.

Soraya Chabarek, CEO of CQS, will continue to lead the team and senior partners Craig Scordellis, CIO Credit, and Jason Walker, CIO ABS, also remain in their positions.

"Manulife IM is the ideal home for CQS, and this step marks the start of an exciting new chapter for our clients, our colleagues, and our alternative credit platform," said Chabarek. "Together we will open significant new opportunities for our clients who will benefit from the scale and capital strength of our new parent."