Financial Services Corporation Manulife to acquire control of Comvest Credit Partners, a private credit entity.
Manulife Financial Corporation has announced its intention to acquire a 75% stake in Comvest Credit Partners for US$937.5 million, marking a significant step in expanding its private credit asset management platform. The deal, expected to close in the fourth quarter of 2025, will create a leading US$18.4 billion private credit asset management platform.
Background and Rationale
Comvest Credit Partners, a rapidly growing middle market direct lending private credit manager, has a strong foothold in non-sponsor-backed middle market direct lending and specialty finance. On the other hand, Manulife boasts complementary strengths in private equity sponsor-backed lending via its Senior Credit team. The acquisition fits Manulife's broader strategy to increase earnings from its highest-potential businesses by expanding in the fast-growing private credit market.
Future Strategy and Partnership Impact
The deal will align the two teams into a co-branded platform—Manulife | Comvest—leveraging both teams’ strengths to diversify lending strategies across multiple private credit segments. Comvest leadership will remain in charge of day-to-day operations and investment decisions, ensuring continuity and preserving the firm's strong market position. The ownership structure retains 25% with Comvest employees plus performance-based earn-outs and a path to full ownership after six years, aligning incentives for continued growth and success.
The partnership is expected to be immediately accretive to Manulife's core EPS, core ROE, and core EBITDA margin. It creates a larger, comprehensive private credit platform, enhancing scale and competitive positioning. The platform diversification combines Comvest’s expertise in middle market non-sponsor backed credit with Manulife’s strength in sponsor-backed credit.
How the Partnership Enhances Manulife's Platform
The partnership enhances capital origination capabilities and broadens investor access across institutional, wealth, retail, and retirement channels through combined distribution networks. It supports Manulife’s goal to serve growing borrower demand for private credit with strong risk-adjusted returns across market cycles.
Key Appointments
Robert O'Sullivan, Co-Founder and CEO of Comvest, will be appointed Head of the new Manulife | Comvest private credit platform. He will report directly to Anne Valentine Andrews, Global Head of Private Markets, and join the Private Markets Executive Committee. Michael Falk, Founder of Comvest, will serve as Senior Advisor and Board Member.
Funding and Closing Conditions
The transaction will be funded entirely with cash on hand, resulting in less than a 3-point reduction to Manulife's LICAT ratio. It is subject to customary closing conditions and approvals. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Manulife, while Morgan Stanley & Co. LLC is acting as exclusive financial advisor to Manulife on the transaction.
Comvest is eligible for additional consideration of up to US$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.
In summary, this acquisition and partnership strategically expand Manulife’s private credit capabilities by combining complementary lending approaches, preserving proven management and investment discipline, and scaling the platform to meet growing market demand while immediately enhancing Manulife’s financial performance.
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- This partnership between Manulife Financial Corporation and Comvest Credit Partners aims to create a powerful platform in the private credit asset management market, enabling both entities to collaborate and diversify their lending strategies in personal-finance and business-related investing.
- The acquisition of a 75% stake in Comvest Credit Partners by Manulife is expected to improve Manulife's core earnings, return on equity, and EBITDA margin, all while growing its private credit market presence and increasing its ability to serve a wider range of investors in both business and personal finance.
