Manulife | CQS Investment Management is a multi-sector alternative credit manager that aims to build partnerships with investors, generate long-term risk-adjusted returns, and deliver service across various return objectives and risk appetites

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Manulife Investment Management acquires CQS. (Credit: Sasun Bughdaryan on Unsplash)

Manulife Investment Management, an asset management arm of Canadian financial services provider Manulife Financial, has completed its previously announced acquisition of CQS.

CQS is a UK-based multi-sector asset management firm that manages a range of investment mandates including convertibles, asset-backed securities, credit, loans, and equities.

The acquisition includes the CQS brand and Manulife Investment Management plans to co-brand the acquired business as “Manulife | CQS Investment Management”.

As part of the acquisition, CQS CEO Soraya Chabarek will remain in her role, along with senior partners Craig Scordellis, CIO Credit, and Jason Walker, CIO ABS, reporting to Chabarek.

Soraya Chabarek said: “Today sees the joining together of our two businesses as Manulife | CQS Investment Management.

“Manulife IM is the ideal home for CQS, and this step marks the start of an exciting new chapter for our clients, our colleagues, and our alternative credit platform.

“Together we will open significant new opportunities for our clients who will benefit from the scale and capital strength of our new parent.”

The transaction, approved by the UK’s Financial Conduct Authority, is expected to advance Manulife’s growth and strategy as an international wealth and asset manager.

Manulife | CQS Investment Management is a multi-sector alternative credit manager providing income solutions to retail, institutional and retirement investors.

The company aims to build partnerships with investors, generate long-term risk-adjusted returns, and deliver service across various return objectives and risk appetites.

Piper Sandler & Company served as exclusive financial advisor and Simmons & Simmons as legal counsel to CQS, on this transaction.

Manulife Investment Management president and CEO Paul Lorentz said: “With this acquisition, Manulife Investment Management is well-positioned to capitalize on the increased investor interest in alternative credit and accelerate the growth of our global business.

“We are excited to complete this strategic acquisition because of the tremendous opportunity to serve retail, retirement, and institutional investors more deeply and unlock growth for our clients.

“Many investors are looking to increase their exposure to fixed income within their portfolios by adding more sophisticated strategies within this asset class, and we are pleased to expand our offering in this space.”

In May last year, Manulife Investment Management, on behalf of Manulife Infrastructure Fund II and its affiliates, agreed to acquire a controlling stake in Dutch data centre owner and operator Serverfarm.