Finance

Manulife Investment Management Seals Acquisition of Alternative Credit Powerhouse CQS

LONDON and TORONTO, April 3, 2024 — In a landmark announcement made today, Manulife Investment Management revealed the successful completion of its acquisition of the prestigious multi-sector alternative credit management firm CQS, following the receipt of regulatory approval from the U.K. Financial Conduct Authority. This emblematic transaction is set to catalyze Manulife's expansion and consolidate its position as a premier wealth and asset manager. The acquisition is of strategic importance as it enhances the firm's ability to furnish diverse income solutions spanning the entire credit spectrum for a broad clientele that includes retail, institutional and retirement investors.

In an ambitious move to integrate the two brands, Manulife Investment Management disclosed its intent to merge the CQS brand with its own, likely unveiling a co-branded logo—Manulife | CQS Investment Management—where the legal landscape allows such collaboration. This rebranding strategy underlines the amalgamation's immense potential to recast Manulife's future in the wealth management domain.

Paul Lorentz, the President and CEO of Manulife Investment Management, expressed enthusiasm about the acquisition's alignment with the rising demand in alternative credit investments. He asserted, "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." Lorentz's remarks underscore the widespread penchant among investors to augment their fixed income exposure with more sophisticated portfolio strategies, timely addressing which Manulife takes pride in enhancing its offerings.

Adding to the sentiment, Soraya Chabarek, CEO of CQS, commended the merger, viewing it as the genesis of a promising pathway for both clients and the alternative credit platform at large. "Today sees the joining together of our two businesses as Manulife | CQS Investment Management. 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," she remarked.

Moreover, Chabarek confirmed her continued leadership as CEO of CQS. Adding to the maintained continuity, Senior Partners such as Craig Scordellis, CIO Credit, and Jason Walker, CIO ABS, will also persevere in their roles under Chabarek’s direction. This commitment to leadership stability reassures stakeholders of the integrity of CQS’s operational philosophy post-acquisition.

The specific financial details surrounding the transaction were not made public. However, it was disclosed that Piper Sandler & Company operated as the exclusive financial advisor, while Simmons & Simmons LLP provided legal counsel to CQS throughout the transaction, signifying the caliber of expertise harnessed to oversee the deal.

Manulife Investment Management's legal and compliance note reiterated the issuance and approval of the transaction by Manulife Investment Management (Europe) Limited—a regulated entity under the Financial Conduct Authority and registered in England under the registration number 02831891—with its registered office at One London Wall, London.

Bridging Global Wealth Management: Manulife Investment Management's Vision

Manulife Investment Management, synonymous with the global wealth and asset management arm of Manulife Financial Corporation, operates on a mission that streamlines decision-making and enhances life quality by empowering investors for a more prosperous future.

Serving a vast base of over 17 million individuals, institutions, and retirement plan members, the firm upholds the conviction that its international footprint, synergistic businesses, and the robust backing of its parent company uniquely position it to leverage the evolving global economic trends. Manulife renders access to an extensive gamut of public and private investment solutions: whether in equities, fixed income, multi-asset, and alternatives, not excluding cutting-edge sustainability-linked strategies like natural capital. All these offerings are shaped by the commitment to aid investors maneuver with more savvy through intricate financial landscapes and materialize their investment objectives. However, the firm emphasizes that not all offerings are equally available across different jurisdictions.

More information about Manulife Investment Management and its diverse service offerings is accessible via their official website, manulifeim.com.

About Manulife | CQS Investment Management

The new chapter of Manulife | CQS Investment Management commences as a merger that produces a dominant multi-sector alternative credit manager, now under the full ownership of Manulife Investment Management. With over two decades of managing credit strategies with a rigorous research-driven approach, the entity has weathered numerous market cycles to emerge resilient.

The firm prides itself on its core capabilities, which span corporate credit that includes loans and bonds, asset-backed securities, regulatory capital, collateralized loan obligations, and convertible bonds. The team's dedication is rooted in the motivation to assist investors in achieving their financial aspirations throughout various market conditions. This is accomplished through scrutinizing the quality of credits and generating income.

Integrity, performance, and service are the cornerstones upon which the firm is built. The result is enduring partnerships with investors marked by long-term risk-adjusted returns and a congenial adaptive service that tailors mandates to suit a spectrum of return expectations and risk tolerances. For anyone interested in exploring the offerings of Manulife | CQS Investment Management further, additional details can be found at their website, cqs.com.

SOURCE Manulife Investment Management

Diving deep into the inner workings of the financial industry, this acquisition is a signal of the shifting paradigms in the wealth management sector, highlighting Manulife's commitment to growth and innovation.

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The news article you have just read is grounded in the latest developments from the world of finance and investment management. Manulife's strategic acquisition of CQS not only indicates the growing significance of alternative credit in investment portfolios but also demonstrates the importance companies place on meeting the broader needs of their clients in an ever more complex financial environmenterse.