Canadian insurer creates $18.4 billion alternative credit platform to compete with Apollo, Blackstone in red-hot middle market lending space
Manulife Financial Corporation is betting big on the private credit boom, announcing a $937.5 million acquisition of 75% of Comvest Credit Partners that will vault the Canadian insurance giant into the top tier of middle market direct lenders. Researchers at Octum have witnessed more insurance companies buying up private credits firms that have at least a few billion in assets under management and adequate access to credit deal flow.
The transaction combines Comvest’s $14.7 billion platform with Manulife’s existing $3.7 billion Senior Credit business to create an $18.4 billion private credit powerhouse operating under the Manulife | Comvest brand. The deal represents one of the largest asset management acquisitions by a traditional insurer this year, underscoring the strategic imperative for diversified financial services companies to capture fee-based growth in alternatives.
“With a continued focus on disciplined, strategic capital deployment, our acquisition of Comvest Credit Partners further enhances our private markets platform by adding differentiated capabilities in private credit,” said Phil Witherington, Manulife’s President and CEO. The transaction is expected to provide immediate accretion to core earnings per share, return on equity, and EBITDA margins—metrics closely watched by investors as Manulife expands beyond traditional insurance operations.
The acquisition timing capitalizes on explosive growth in private credit, where assets under management have tripled since 2018 as borrowers seek alternatives to bank financing and investors chase yield in a low-rate environment. Comvest’s differentiated approach spans non-sponsor lending, specialty finance exposure, and traditional sponsor-backed transactions—a diversification strategy that has delivered consistent returns through multiple market cycles.
“We are excited to see the continued growth and maturity of private credit as an asset class, providing flexible, tailored financing to businesses that are underserved by traditional lenders,” said Paul Lorentz, President and CEO of Manulife Wealth and Asset Management. The combination follows Manulife’s 2024 acquisition of alternative credit manager CQS, demonstrating sustained commitment to building a comprehensive alternatives platform.
The strategic rationale extends beyond pure scale and Manulife is no stranger in asset management acquisitions (remember Bentall Kennedy) . Manulife’s decade-long relationships with private equity sponsors complement Comvest’s strength in non-sponsor middle market lending, creating cross-selling opportunities and enhanced deal flow. Comvest CEO Robert O’Sullivan, who will lead the combined platform, highlighted these synergies: “Manulife’s deep relationships with private equity sponsors, robust sourcing capabilities, financial strength, and broad distribution platform will help us scale our differentiated private credit strategy.”
Deal terms include potential earnout payments of up to $337.5 million tied to performance targets, plus put/call mechanisms allowing Manulife to acquire the remaining 25% stake. The cash-funded transaction will reduce Manulife’s regulatory capital ratio by less than three percentage points, indicating conservative leverage in pursuing growth.
Organizationally, the acquisition elevates Comvest founder Michael Falk to Senior Advisor and Board Member, while O’Sullivan joins Manulife’s Private Markets Executive Committee—governance structures designed to preserve Comvest’s entrepreneurial culture within a larger institutional framework.
The transaction positions Manulife to compete directly with dedicated alternative asset managers like Apollo Global Management and Blackstone, which have built dominant positions in private credit through both organic growth and strategic acquisitions. For traditional insurers seeking fee-based revenue diversification, private credit offers attractive economics: steady management fees, performance upside, and correlation benefits with insurance liabilities.
Expected to close in Q4 2025 pending regulatory approvals, the Comvest acquisition represents a significant step in Manulife’s transformation from pure-play insurer to diversified asset manager. With more than $900 billion in Global Wealth and Asset Management assets, the company is leveraging its insurance balance sheet strength to build scalable alternatives platforms serving institutional, retail, and retirement clients.
For the broader private credit market, Manulife’s entry signals continued institutionalization of what was once a niche lending strategy. As regulatory capital requirements constrain traditional bank lending and borrowers demand financing flexibility, well-capitalized platforms like Manulife | Comvest are positioned to capture disproportionate market share in the rapidly expanding direct lending ecosystem.
