Manulife Investment Management is set to acquire multi-sector alternative credit manager CQS for an undisclosed sum with the deal set to close in early 2024.
Specifically, the transaction concerns the firm’s credit platform and brand. Following close, Manulife is set to align the CQS brand with its own as a co-branded logo – Manulife | CQS Investment Management.
The transaction will allow clients of both firms enhanced investment solutions, allowing them access to the complementary global offerings.
Specifically, Manulife intends to 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”.
In addition, Manulife has confirmed that it will continuously invest in the business to develop the business’ strategies and continue to best serve CQS’ clients.
London-based CQS has around $13.5 billion in assets under management as of October this year.
Paul Lorentz, president and chief executive of Manulife Investment Management, said: “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.”
CQS was founded in 1999 by Lord Hintze and has since evolved into a multi-sector credit platform, offering alternative credit strategies including: corporate credit, asset backed securities, collateralised loan obligations, regulatory capital, convertible bonds, and structured credit, as well as ESG credentials.
Senior leadership is set to be retained following the acquisition and Lord Hintze will form his own firm from which to manage his fund.
Soraya Chabarek, chief exeucitve of CQS highlighted the key benefits of the transaction: “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.
“[…] 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.”