Manulife Financial, through its more than $900 billion global wealth and asset management (WAM) segment, signed an agreement to acquire 75% of Comvest Credit Partners for $937.5 million in upfront consideration. As part of the agreement, Manulife will align its $3.7 billion senior credit team with Comvest, creating a $18.4 billion private credit asset management platform. Manulife intends to co-brand the new platform as Manulife | Comvest.
“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,” Phil Witherington, president and CEO of Manulife, said. “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.”
“We are excited to see 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,” Paul Lorentz, president and CEO of Manulife WAM, said. “We are thrilled to welcome Comvest’s exceptionally talented team of investment professionals. 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.”
“This partnership is an important step forward for Comvest and will meaningfully strengthen our market position,” Robert O’Sullivan, CEO of Comvest Credit Partners, said. “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. 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.”
In addition to the upfront consideration, Comvest will be eligible for additional consideration of up to $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. The transaction is immediately accretive to core EPS, core ROE and WAM’s core EBITDA margin and will be funded entirely with cash on hand, resulting in less than a 3-point reduction to Manulife’s LICAT ratio.
Michael Falk, founder of Comvest, will assume a role as senior advisor and board member, where he will continue to offer strategic advice and guidance. Robert O’Sullivan, co-founder and CEO of Comvest, will be appointed head of the newly aligned business. He will report directly to Anne Valentine Andrews, global head of private markets, and will join the private markets executive committee.
The transaction is expected to close in Q4/25, subject to customary closing conditions and approvals.
Morgan Stanley is acting as exclusive financial advisor to Manulife on the transaction and Skadden, Arps, Slate, Meagher & Flom is serving as legal advisor.
