Manulife Bets Big on Private Credit with Comvest Acquisition, Signals Shift in Asset Management

Toronto, ON – November 4, 2025 – Manulife Financial Corporation has officially closed its acquisition of a 75% stake in Comvest Credit Partners, creating a new private credit platform, Manulife | Comvest Credit Partners. The move, announced earlier this year, signifies a strategic expansion into a rapidly growing asset class and signals a potential shift in Manulife’s wealth and asset management approach.

With over $900 billion in assets under management (AUM), Manulife is doubling down on private credit, a sector experiencing explosive growth driven by institutional investors seeking higher yields in a low-interest-rate environment. The deal allows Manulife to tap into Comvest’s specialized expertise in middle-market lending, a segment known for its attractive risk-adjusted returns.

“This isn’t just about adding AUM; it’s about building a dedicated capability in a space where demand is outstripping supply,” said one industry analyst familiar with the deal. “Manulife recognized the opportunity to move beyond simply investing in private credit funds to directly owning a leading private credit manager.”

The Rise of Private Credit and Manulife’s Strategy

Private credit, also known as private debt, involves lending to companies that are not publicly traded. It has become increasingly popular with investors seeking diversification and higher returns than traditional fixed-income investments. According to industry reports, the private credit market has grown at an annual rate of 15-20% in recent years.

Manulife's acquisition of Comvest positions it to capitalize on this growth. Comvest specializes in providing financing to middle-market companies, a segment that often lacks access to traditional bank loans. The firm has a proven track record of delivering consistent returns and managing risk effectively. As of 2023, Comvest managed approximately $5 billion in assets, and its funds have consistently outperformed many of its peers.

“Manulife was previously a relatively minor player in the direct private credit space,” explained another industry source. “This acquisition instantly elevates them to a more competitive position and allows them to offer a broader range of alternative investment solutions to their clients.”

A Unique Ownership Structure: Incentivizing Success

What sets this deal apart is the unusual agreement that allows Comvest employees to retain a 25% ownership stake in the new platform. This structure, while uncommon in large acquisitions, is seen as a strategic move to preserve the firm’s culture and incentivize long-term success.

“Retaining a significant ownership position for the Comvest team ensures that their interests are aligned with Manulife’s,” said a source close to the negotiations. “It creates a sense of partnership and fosters a collaborative environment, which is crucial for maintaining Comvest’s entrepreneurial spirit and attracting top talent.”

This structure, however, also presents potential challenges. Balancing the priorities of a large corporate parent with the autonomy of a smaller, independent firm requires careful communication and a commitment to preserving Comvest’s unique identity. “It’s a delicate balancing act,” commented an analyst. “Manulife needs to allow Comvest to operate with a degree of independence while also integrating its risk management and compliance processes.”

Navigating the Risks of Private Credit

While private credit offers attractive returns, it’s not without risks. The lack of liquidity, the complexity of loan structures, and the potential for defaults are all factors that investors must consider. The market has also come under increased regulatory scrutiny, with concerns about leverage and transparency.

“The due diligence process was extensive,” shared a source familiar with the deal. “Manulife thoroughly vetted Comvest’s portfolio and risk management practices before finalizing the acquisition. They are committed to maintaining a conservative approach to lending and ensuring that all investments meet their strict criteria.”

Furthermore, some analysts believe that the current economic environment poses a challenge for private credit lenders. “Rising interest rates and slowing economic growth could lead to an increase in defaults,” warned one expert. “Private credit lenders need to be prepared to manage these risks and proactively work with borrowers to mitigate potential problems.”

Implications for the Future

The acquisition of Comvest Credit Partners is a strategic move that positions Manulife for long-term growth in the rapidly expanding private credit market. It expands the company’s asset management capabilities, provides access to a diversified portfolio of middle-market investments, and aligns with the broader industry trend of increasing institutional investment in alternative assets.

“We’re seeing a fundamental shift in the asset management landscape,” said one industry observer. “Investors are increasingly looking beyond traditional asset classes in search of higher returns and diversification. Manulife’s acquisition of Comvest is a clear indication that they are committed to meeting this demand.”

The success of this acquisition will depend on Manulife’s ability to integrate Comvest effectively, preserve its culture, and navigate the challenges of the private credit market. If successful, this deal could pave the way for further consolidation in the industry and accelerate the growth of private credit as a mainstream asset class.