Manulife Investment Management has closed Manulife Capital Partners VII (MCP VII), its $752m private credit fund, which will focus on 20-30 portfolio companies with over $20m in EBITDA across sectors including business services, industrial manufacturing, aerospace and defence, as well as building products.
According to a press release, MCP VII targets high yield with equity upside through investment of junior credit capital in US middle market companies, providing contractual cash coupons and capital appreciation for investors. The fund is backed by a global investor base of institutional and private capital investors including a capital commitment from Manulife.
In a statement, Josh Liebow, Co-Head of Junior Credit at Manulife Investment Management, said: “Our investment approach includes a target mix of subordinated and second-lien debt and structured and common equity that allows for meaningful participation in growth that is balanced by the potential for double digit yield.”
Matt Szwarc, Co-Head of Junior Credit at Manulife Investment Management, added: “Since inception, our veteran team has deployed more than US$3.3 billion 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.”
Liebow and Szwarc serve as Portfolio Managers of the fund.
Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation, a Canadian multinational insurance company and financial services provider. Its global private equity and credit platform currently has more than $25bn in AUM and unfunded commitments across primary private equity funds, equity co-investments, GP-led secondaries, senior credit and junior credit.
