Comvest Partners has completed the sale of a 75% interest in its direct lending platform, Comvest Credit Partners, to Manulife Financial Corporation, thereby establishing a private credit asset management platform now branded as Manulife | Comvest Credit Partners. The transaction closed in early November 2025 and signals a significant expansion for both firms in the private credit space, particularly geared toward U.S. middle-market direct lending.
- Manulife now owns 75% of Comvest Credit Partners, with Comvest employees retaining a 25% stake and Manulife having a path to full ownership after six years.
- The newly created platform integrates Comvest’s direct lending expertise with Manulife’s distribution and private market resources.
- The partnership is expected to provide private credit solutions for both sponsored and non-sponsored companies, leveraging deep origination channels, rigorous underwriting discipline, and long-term stability.
Leadership and Strategic Impact
- Robert O’Sullivan, previously CEO of Comvest Credit Partners, will serve as the Global Head of Private Credit for the combined platform, maintaining continuity and leadership
- Comvest Private Equity was not part of this transaction, will remain independent, and is slated for rebranding in the coming months.
- Manulife anticipates that the deal will boost its core EPS, core ROE, and EBITDA margin, broadening origination strength and third-party capital access for the platform.
Market Context
- The union creates a US$18.4 billion alternative credit platform, extending Manulife’s reach in middle-market private credit across North America and enhancing its $900 billion Global Wealth & Asset Management segment.
- The move aligns with broader trends of asset managers scaling in private credit to serve growing institutional, retirement, and retail clients globally.
This acquisition positions Manulife | Comvest Credit Partners to deliver differentiated credit solutions and robust, risk-adjusted returns to investors and borrowers through market cycles.
What Alternative Business Lenders Need to Know
Manulife | Comvest Credit Partners is now a formidable competitor in U.S. and North American middle-market direct lending, offering flexible capital structures and big checks suitable for alternative lenders to monitor closely. Here’s the actionable, lender-focused detail:
Loan Size Ranges
- Target investment (hold) size: up to $300 million or more per transaction.
- Platform has capacity for significant follow-on capital, implying willingness to support growing or repeat borrowers.
Geographic Focus
- Core focus: North America (U.S. and Canada).
- Origination led from offices in West Palm Beach, Chicago, and New York City.
Industry Specializations
- Broad, but with depth across subsectors gained from decades of structuring deals in U.S. middle market.
- No explicit public sector blacklist, but states deep relationships and specialized expertise in major middle-market verticals; specifics by request, but expect traditional mid-market industries like healthcare, business services, consumer, and manufacturing to feature.
Deal Structures
- Offers first-lien, unitranche, split-lien, last-out, and second-lien facilities—plus equity co-investments.
- Willing to finance sponsored and non-sponsored companies for buyouts, growth, recaps, add-ons, and refinancings.
- Typical borrower EBITDA: >$7.5 million, but will flex for high-growth, recurring-revenue, specialty finance, stressed/distressed deals.
- Flexible on borrower ownership (public/private, sponsor/non-sponsor).
Market Impact & Pricing
- Pricing impact: Manulife’s entry boosts dry powder, competition, and flexibility for larger and structured deals, likely applying pressure on yields for top-tier borrowers and pushing structures further out on leverage and features, especially in sponsor and larger non-sponsor middle market.
- Large platform AUM (over $18 billion after merger) signals aggressive pursuit of significant or syndicated transactions.
- Expect tight spreads and structured senior and unitranche loan pricing, with Manulife leveraging relationships for competitive, risk-sensitive yet relationship-oriented terms.
- Manulife's global balance sheet and third-party capital may let them win on size, speed, and flexibility, presenting a direct challenge to both bank and non-bank lenders in core middle-market and upper middle-market segments.
For Lenders in the Field
- If you’re targeting $20M–$300M+ deals in U.S./Canada with flexible structures, Manulife | Comvest is a new and serious competitive threat, particularly for sponsor-backed and larger non-sponsored borrowers.
- Expect increased competition for large-ticket club, syndicated, and direct deals with sponsor relationships or complex capital needs.
- Their broad spectrum of structures and willingness to selectively play below the stated EBITDA threshold makes them portable for special situations as well.
For originators working the same middle-market and non-bankable corporate terrain, anticipate pressure on fees, leverage, and structure, especially in competitive sponsor processes and for attractive non-sponsor credits. Watch their activity for new benchmarks on loan size, pricing strategy, and structure flexibility.
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