Manulife Investment Management set to acquire CQS to enhance global credit offering

Manulife Investment Management has entered into a landmark agreement to acquire multi-sector alternative credit manager CQS. This significant acquisition, which is expected to be completed in early 2024, will see Manulife Investment Management taking over the CQS credit platform and brand, marking a major expansion in their global credit offerings.

Enhancing Global Investment Solutions

The acquisition of London-based CQS is set to provide enhanced access to complementary global investment solutions for the clients of both Manulife Investment Management and CQS. The deal will see the retention of CQS’s investment philosophy and process, as well as the expansion of Manulife Investment Management’s distribution footprint across various client segments and geographies. As of October 31, 2023, the CQS credit platform boasts approximately US$13.5 billion in assets under management.

Mutual Benefits for Both Firms

Paul Lorentz, president and CEO of Manulife Investment Management, expressed enthusiasm about the acquisition, citing CQS’s proven investment process and robust performance as key factors in the decision. He highlighted that CQS’s capabilities complement Manulife Investment Management’s existing fixed income and multi-asset solutions business.

Soraya Chabarek, CEO of CQS, also shared her positive outlook on the partnership, emphasizing the shared client-focused culture between the two firms and the benefits of Manulife Investment Management’s strong platform and global distribution.

CQS’s Established Reputation and Leadership

CQS, founded in 1999 by Lord Hintze, has evolved into a renowned multi-sector credit platform under the leadership of Ms. Chabarek and her fellow Senior Partners. The firm offers a range of alternative credit strategies, with ESG principles integrated throughout its organization and investment approach. Post-acquisition, CQS will continue to be led by Ms. Chabarek, aligning with Manulife’s brand.

Strategic Move in the Financial Industry

This transaction represents a significant step for Manulife Investment Management in enhancing its position in the global financial market. The financial terms of the deal, which is subject to customary closing conditions and regulatory approvals, were not disclosed. Piper Sandler & Company and Simmons & Simmons LLP served as exclusive financial advisor and legal counsel to CQS, respectively.

The expected integration of CQS with Manulife Investment Management in early 2024 marks a pivotal moment in the financial services industry, heralding a new era of growth and collaboration between two major players in the investment management sector.