US$ unless otherwise stated
BOSTON, April 4,
2024 /PRNewswire/ - Manulife Investment
Management (Manulife IM) today announced the final closing of
Manulife Strategic Secondaries Fund L.P. (the fund). The fund
strategy focuses exclusively on investments in sector-leading
companies backed by high-quality general partners (GPs). With this
close, the total GP-led secondaries platform has reached
$610 million in aggregate capital
commitments from a diverse roster of third-party investors and the
Manulife general account.
Manulife IM was early to recognize the expanding breadth of the
secondary market, most recently seen in the rise of GP-led
secondaries. Jeff Hammer and
Paul Sanabria lead this strategy as
global co-heads and serve as co-portfolio managers of the fund.
"The importance of GP-led secondaries has been validated by the
market given it represents roughly 50% of overall global secondary
transaction volume for the last four years running," said
Paul Sanabria. "GP-led secondaries
create interim liquidity for limited partners to own great
companies and allow sponsors to hold onto trophy assets through the
next stage of value creation. It's a win/win and the fund is well
positioned to take advantage of this growing
opportunity."
The fund invests primarily in continuation vehicles with a
strong preference for concentrated transactions of three or less
assets. The investment team believes that the fund can create
secondary market alpha by thoughtfully curating a portfolio of
great companies, underwritten one asset at a time. An important
part of the team's approach is to be invested alongside strong
sponsors, who are underwritten with the same intensity as the
companies themselves, and who are materially aligned with new
investors.
"Continuation vehicles are a game changer for the secondary
market," said Jeff Hammer.
"Portfolio construction in the GP-led market involves deep dive
diligence. We analyze companies and underwrite returns with a
degree of precision that the traditional LP secondary market has
never been able to achieve. This creates an opportunity to deliver
premium secondary market returns on behalf of our investors."
Manulife IM's sponsor-centric platform comprises a network of
over 200 general partner relationships offering capital solutions
across five verticals: primary fund investments, equity
co-investments, senior credit and junior credit, and GP-led
secondaries. As of December 31, 2023,
Manulife IM has $25.8 billion in AUM
across private equity and credit.1
"We appreciate the long-standing relationships with our global
private equity sponsors and the recognition of our expertise in
providing flexible capital solutions across sponsor needs" added
Vipon Ghai, global head of private
equity and credit, Manulife IM. "We are pleased with the support of
our inaugural fund focused on GP-led secondaries. By successfully
navigating a challenging macro environment, the team was able to
provide a new and compelling investment opportunity for our
clients."
________________________________
1 AUM of private equity & credit ("PE&C")
includes funded committed capital as of December 31, 2023. The
total value includes $8.2B of unfunded commitments.
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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.
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SOURCE Manulife Investment Management