LONDON and TORONTO, Nov. 15,
2023 /PRNewswire/ - Manulife Investment Management
has signed an agreement to acquire multi-sector alternative credit
manager CQS. Upon completion of the transaction, Manulife
Investment Management will acquire the CQS credit platform and the
CQS brand.
The acquisition of London-based CQS will give the clients of
both Manulife Investment Management and CQS enhanced access to
their complementary global investment solutions. Manulife
Investment Management will retain CQS's rigorous investment
philosophy and process and bring its differentiated capabilities to
new investors while scaling its distribution footprint across
broader client segments and geographies. CQS and its clients will
benefit from Manulife Investment Management's strong capital base
to continuously invest in the business and support growth across
its strategies. The CQS credit platform has approximately
US$13.5 billion in assets under
management as of October 31,
2023.
"We are pleased to enter into this agreement which we see as
mutually beneficial to both firms as well for those who have been
investing with CQS for decades," said Paul
Lorentz, president and CEO, Manulife Investment Management.
"CQS brings to our portfolio a proven investment process, robust
performance, and expertise across market cycles, and a culture that
has attracted both talent and flows into the firm. We are very
excited for the opportunity as CQS's capabilities are a complement
to our existing fixed income and multi-asset solutions business and
a powerful addition to our global credit offering."
"In Manulife Investment Management we have found the optimal
long-term partner. We share a client-focused culture, and the
support of its strong platform and global distribution combined
with the autonomy of our investment teams will ensure we continue
to strive to deliver attractive long-term returns to our client
base," said Soraya Chabarek, CEO,
CQS. "I would like to take this opportunity to thank Lord Hintze
for the personal support and wise counsel he has given me as CEO.
Over the last decade we have transformed CQS into a global
alternative credit platform and this transaction is an exciting and
important strategic step forward for our business, our clients, and
our employees."
CQS is one of the most established names in alternative credit,
having managed research-driven credit strategies for over two
decades across multiple market cycles and geographies. CQS was
founded in 1999 by Lord Hintze as a hedge fund manager, and under
the leadership of Ms. Chabarek, who joined the firm in 2012, along
with the Senior Partners Group that was formed in 2021, it has
evolved into a multi-sector credit platform. Today, CQS offers
alternative credit strategies including corporate credit (loans and
bonds), asset backed securities (ABS), collateralized loan
obligations (CLOs), regulatory capital, convertible bonds, and
structured credit. It has ESG principles integrated throughout the
organization and into the investment approach.
CQS will continue to be led by Ms. Chabarek and her fellow
Senior Partners Craig Scordellis, CIO Credit, and Jason Walker, CIO ABS. Manulife Investment
Management will acquire the CQS brand and intends to align it with
the Manulife brand as a co-branded logo – Manulife | CQS Investment
Management – where permitted.
Lord Hintze's founder's hedge fund, the Directional
Opportunities Fund, and certain related mandates are not included
in the transaction. Lord Hintze will be forming his own firm under
which he will continue to manage his fund on behalf of
investors.
Lord Hintze said, "I'm delighted that CQS has found the right
partner in Manulife Investment Management. It provides a long-term
platform that will enable CQS to thrive as a leading alternative
credit manager for years to come under Soraya's exceptionally able
leadership. I will now focus full-time on running the Directional
Opportunities Fund, an opportunity that I am excited about. I wish
Soraya and the CQS team every success as they embark on this
exciting new chapter."
The transaction is expected to close in early 2024 subject to
customary closing conditions and regulatory approvals. At close,
CQS will begin the process of integrating with Manulife Investment
Management over time. The financial terms of the transaction were
not disclosed. Piper Sandler &
Company served as exclusive financial advisor and Simmons &
Simmons LLP served as legal counsel to CQS in this
transaction.
Issued and approved by Manulife Investment Management
(Europe) Limited. Registered in
England No.02831891. Registered Office: One
London Wall, London EC2Y 5EA. Authorised and regulated by
the Financial Conduct Authority.
About Manulife Investment
Management
Manulife Investment Management is the brand for the global
wealth and asset management segment of Manulife Financial
Corporation. Our mission is to make decisions easier and lives
better by empowering investors for a better tomorrow. Serving more
than 17 million individuals, institutions, and retirement plan
members, we believe our global reach, complementary businesses, and
the strength of our parent company position us to help investors
capitalize on today's emerging global trends. We provide our
clients access to public and private investment solutions across
equities, fixed income, multi-asset, alternative, and
sustainability-linked strategies, such as natural capital, to help
them make more informed financial decisions and achieve their
investment objectives. Not all offerings are available in all
jurisdictions. For additional information, please visit
manulifeim.com.
About CQS
CQS is a multi-sector alternative credit manager with a 20-year
history of managing research-driven credit strategies over multiple
market cycles. CQS's core capabilities span corporate credit (loans
and bonds), collateralized loan obligations, convertible bonds,
asset backed securities, regulatory capital, and structured credit.
CQS's ambition is to continue to help investors achieve their goals
across market cycles by selecting good quality credits and
generating income. CQS's teams are committed to building enduring
partnerships with investors, generating long-term risk-adjusted
returns and delivering high levels of service, tailoring mandates
across a range of return objectives and risk
appetites.
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SOURCE Manulife Investment Management