Manulife Financial has agreed to acquire a 75% stake in middle-market lender Comvest Credit Partners, creating an $18.4bn private credit platform as the Canadian insurer deepens its push into alternative assets, according to a report by Bloomberg.
The transaction, valued at approximately $938m, includes an additional earnout of up to $337.5m based on future performance. Manulife will retain an option to acquire the remaining 25% equity interest at a later date.
Founded in 2000, Comvest focuses on lending to non-sponsored middle-market borrowers and specialty finance companies – segments that remain underserved by traditional lenders but increasingly attractive to institutional capital seeking yield and downside protection.
The acquisition is expected to be immediately accretive to Manulife’s core EPS, ROE, and margins, the firm said in a statement. The deal is slated to close in Q4 2025, subject to regulatory approvals.
The move positions Manulife among a growing group of insurers building direct origination platforms to complement their general account portfolios and third-party asset management franchises. The firm has been steadily increasing its exposure to alternatives, including infrastructure, real estate, and private equity.
Morgan Stanley advised Manulife on the transaction, with legal counsel from Skadden, Arps, Slate, Meagher & Flom.
The announcement comes alongside Manulife’s Q2 results, where the insurer reported core earnings of CAD1.7bn, or CAD0.95 per share – slightly below analyst expectations of CAD0.97.
Year-to-date, Manulife shares are down 2.6%, giving the firm a market capitalisation of approximately CAD73bn.
