Manulife Investment Management announced the final closing of Manulife Capital Partners VII, L.P. (MCP VII), a $752 million private credit fund. This fund seeks to invest junior credit capital in U.S. middle market companies to target high yield with equity upside, offering investors contractual cash coupons and capital appreciation. And MCP VII is backed by a global investor base of institutional and private capital investors, including a capital commitment from Manulife.
Liebow and Szwarc serve as fund portfolio managers. Along with their leadership, the junior credit investment committee utilizes an integrated approach across the private equity and credit teams to share market knowledge and resources from the broader platform. This fund will focus on 20 -30 portfolio companies with over $20 million in EBITDA, including Business Services, Industrial Manufacturing, Aerospace & Defense, Building Products, and others.
Manulife Investment Management’s global private equity and credit platform currently has more than $25 billion in assets under management and unfunded commitments across five verticals: primary private equity funds, equity co-investments, GP-led secondaries, senior credit, and junior credit. And its integrated GP-centric platform possesses a strong network of 200+ sponsor partners.
Since 1998 Manulife Investment Management selectively made junior credit investments in market-leading North American middle market companies by utilizing its private equity sponsor relationships for high-quality deal flow.
KEY QUOTES:
“We are pleased to have attracted interest in the Fund from a highly diversified investor base including both institutional and private capital investors who are looking for an opportunity to participate in company value creation. The successful fundraise demonstrates the strength and expertise of our team, the value we bring to our relationships with our sponsors, and the potential opportunities for our investors.”
- Vipon Ghai, global head of private equity and credit, Manulife Investment Management
“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.”
- Josh Liebow, CFA, co-head of junior credit, Manulife Investment Management
“We are excited to continue the strong legacy of bringing investors high-yielding risk-adjusted unlevered returns. Since inception, our veteran team has deployed more than $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.”
- Matt Szwarc, co-head of junior credit, Manulife Investment Management
