Canadian firm is to acquire majority stake in US middle-market direct lender
Manulife Financial Corporation has announced a major expansion of its private markets strategy with plans to acquire a 75% stake in a fast-growing US middle-market direct lender.
The Canadian company will acquire the majority stake in Comvest Credit Partners for US$937.5 million in upfront cash and then combine Comvest’s US$14.7 billion in assets with Manulife’s US$3.7 billion Senior Credit business to form a new US$18.4 billion private credit platform, co-branded as Manulife | Comvest.
Comvest, will retain its leadership and investment strategy and the combined platform will be lead by its CEO Robert O’Sullivan will lead the combined platform, reporting to Anne Valentine Andrews, Manulife’s Global Head of Private Markets. Founder Michael Falk will serve as Senior Advisor and Board Member.
“This partnership is an important step forward for Comvest and will meaningfully strengthen our market position. From the outset, the synergies between Comvest and Manulife have been clear, we share a disciplined approach to credit, a client-first mindset, and a strong focus on team culture,” said O’Sullivan. “Manulife's deep relationships with private equity sponsors, robust sourcing capabilities, financial strength, and broad distribution platform will help us scale our differentiated private credit strategy and unlock new opportunities.”
READ MORE: Most investors plan to increase or maintain private markets allocations
Manulife will fund the acquisition entirely with cash on hand and additional payments of up to US$337.5 million may be made, contingent on performance targets. Manulife also retains the option to acquire the remaining 25% stake via a put/call mechanism.
“With a continued focus on disciplined, strategic capital deployment, our acquisition of Comvest Credit Partners further enhances our private markets platform by adding differentiated capabilities in private credit,” said Manulife’s CEO, Phil Witherington. “The transaction is expected to be immediately accretive to core EPS, core ROE and core EBITDA margin, it will contribute to the strong growth trajectory of our broader Global Wealth and Asset Management business.”
Paul Lorentz, president & CEO of Manulife Wealth and Asset Management, spoke of the continued growth and maturity of private credit as an asset class, providing flexible, tailored financing to businesses that are underserved by traditional lenders, while offering investors attractive, risk-adjusted returns.
“We are thrilled to welcome Comvest's exceptionally talented team of investment professionals,” he said. “This acquisition, coupled with our acquisition last year of CQS, demonstrates our commitment to thoughtfully grow our business and offer a broader range of investment solutions to our institutional, retail, and retirement clients.”
The acquisition is expected to close in the fourth quarter of 2025, pending customary approvals.
