Manulife closes on $752m private credit fund
Manulife Investment Management has announced the final close of its new private credit fund, with $752m (£591m) raised.
The Manulife Capital Partners VII fund will invest in junior credit capital in US-based middle market companies to target high yields with equity upside. It will provide contractual cash coupons and capital appreciation for investors.
The fund’s investor have not been named but they include institutional and private capital investors, as well as a capital commitment from Manulife.
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“We are pleased to have attracted interest in the fund from a highly diversified investor base including both institutional and private capital investors who are looking for an opportunity to participate in company value creation,” said Vipon Ghai, global head of private equity and credit at Manulife Investment Management.
“The successful fundraise demonstrates the strength and expertise of our team, the value we bring to our relationships with our sponsors, and the potential opportunities for our investors.”
The fund’s investment approach includes a target mix of subordinated and second-lien debt and structured and common equity. This will allow for “meaningful participation in growth that is balanced by the potential for double digit yield,” added Josh Liebow, co-head of junior credit at Manulife Investment Management.
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Liebow and co-head of junior credit Matt Szwarc will serve as portfolio managers of the fund.
“We are excited to continue the strong legacy of bringing investors high yielding risk-adjusted unlevered returns,” said Szwarc.
“Since inception, our veteran team has deployed more than $3.3bn into 126 companies as a result in part of their experience and ability to bring flexible capital to a selective portfolio of companies that meet our investment criteria.”
Manulife’s global private equity and credit platform has more than $25bn in assets under management and unfunded commitments across private equity funds, equity co-investments, GP-led secondaries, senior credit, and junior credit.
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