$746 Billion Manulife Investment Management Launches Manulife Private Credit Plus Strategy in Singapore, Semi-Liquid Private Credit Strategy Investing in United States Middle Market Senior Secured Loans Sourced from Manulife Private Equity & Credit Platform and Asset-Based Lending Sourced from 3rd-Party Manager Marathon Asset Management
27th April 2024 | Hong Kong
Manulife Investment Management with $746 billion AUM (Assets under Management) has launched Manulife Private Credit Plus Strategy in Singapore, a semi-liquid private credit strategy investing in United States middle market senior secured loans sourced from Manulife private equity & credit platform and asset-based lending (ABL) sourced from 3rd-party manager Marathon Asset Management. Announcement (23/4/24): “Manulife Investment Management announced today the launch of Manulife Private Credit Plus Strategy (the ‘Strategy’) in Singapore, a diversified private credit fund-of-fund solution that seeks income and, to a lesser extent, capital appreciation by investing in middle market companies alongside select complementary, performance-enhancing credit exposures. The Manulife Private Credit Plus Strategy is a semi-liquid strategy that invests in U.S. middle market senior secured loans sourced across Manulife Investment Management’s global Private Equity and Credit Platform and enhanced through a diverse range of asset-based lending (ABL) sourced through the strategy’s third-party manager, Marathon Asset Management. Private credit has historically provided investors with income and diversification benefits through an attractive combination of differentiated yield, floating rate returns, and the potential for a high level of asset-based principal protection with low volatility1. Generally, private credit has also outperformed its public counterparts in rising rates and stable environments and has historically minimized drawdown effects during recessions.” In 2024 February, Manulife Investment Management & sovereign wealth fund Indonesia Investment Authority (INA) formed a strategic partnership to develop infrastructure & explore investment opportunities in real estate, logistics assets & natural capital sectors in Indonesia. More info below:
“ $746 Billion Manulife Investment Management Launches Manulife Private Credit Plus Strategy in Singapore, Semi-Liquid Private Credit Strategy Investing in United States Middle Market Senior Secured Loans Sourced from Manulife Private Equity & Credit Platform and Asset-Based Lending Sourced from 3rd-Party Manager Marathon Asset Management “
HuiJian Koh, CEO, Manulife Investment Management Singapore: “We are excited to bring another innovative investment strategy to investors in Singapore in a timely manner, as demand for alternative sources of income continues to rise amid the higher for longer rate environment and continued market uncertainty. Manulife Private Credit Plus Strategy was purposely built to be a semi-liquid strategy encompassing a diverse range of income-generating assets, giving investors a more flexible access to liquidity.
The number of publicly traded companies have been on a steady decline in recent years, and more private companies require debt financing to fund their growth. Banks have traditionally played this role, but since the Global Financial Crisis, non-bank lenders have looked to fill the void. It is expected that private debt assets under management will grow from US$1.4 trillion in 2022 to US$2.7 trillion in 2027. With such exponential growth in opportunities, the market is saturated with many private credit strategies coming to market. This makes product differentiation key to providing value and diversification to investors already having existing exposure in private credit.
We recognised ABL as a relatively untapped segment with substantial demand for loan facilities. Currently, the market features a limited number of managers equipped to offer financing solutions to these enterprises. We view asset-based lending as a distinct niche within the broader credit sector, requiring specialized expertise.”
$746 Billion Manulife Investment Management Launches Manulife Private Credit Plus Strategy in Singapore, Semi-Liquid Private Credit Strategy Investing in United States Middle Market Senior Secured Loans Sourced from Manulife Private Equity & Credit Platform and Asset-Based Lending Sourced from 3rd-Party Manager Marathon Asset Management
The Manulife Private Credit Plus Strategy is a differentiated alternative credit solution that takes a multi- strategy approach:
- Differentiated exposure: The Strategy aims to invest in US middle market senior loans which represent one of the largest growing sectors in the US economy, and we believe assets-based lending is an underrepresented exposure in most portfolios;
- Sponsor investment: Manulife Financial Corporation, Manulife Investment Management’s parent company, has committed up to US$100 million into the Strategy;
- Capital will be put to work quickly: The Strategy was launched with a seeded portfolio of loans, meaning it can build a track record quickly and investors may see near term distribution;
- Robust deal flow: The Senior Loans Team at Manulife Investment Management maintains a
healthy deal flow by working with various private markets firms to ensure a wealth of potential
deal options and investment opportunities; and - Leverages a strategic third-party manager: Marathon Asset Management has a track record of
more than 24 years in ABL strategies.
A key feature of Manulife Private Credit Plus Strategy is ABL exposure which is a sector of private credit that comprises loans backed by hard and financial assets. Stable small and mid-sized enterprises with physical assets of value rely on ABL to raise funds for their operations, and large firms also turn to this type of lending to cover short-term cash needs. In addition, ABL offers access to a wide range of sectors, such as healthcare, transportation, consumer, real estate, that provide robust, predictable cash flows with income, and diversification of risk premiums. It also has lower correlation to public equity markets, and offers the highest recovery rates, lowest default rates and volatility compared to high yield bonds, bank syndicated loans and direct lending. The global ABL market size is approximately US$3 trillion, representing a vast investment universe.
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.
About Marathon Asset Management
Marathon Asset Management L.P. is a leading global asset manager specializing in the public and private credit markets with over $22 billion of assets under management. The firm was founded in 1998 and is managed by Bruce Richards (Co-Founder & CEO) and Louis Hanover (Co-Founder & CIO) and employs more than 180 professionals, with 9 Partners that include Christine Chartouni, Ed Cong, Jason Friedman, Jeff Jacob, Jamie Raboy, Andy Springer and Gaby Szpigiel. Its corporate headquarters is located in New York City, and it has offices in London, Miami, Los Angeles and Luxembourg. Marathon is a Registered Investment Adviser with the Securities Exchange Commission. For more information, please visit the company’s website at marathonfund.com.
$746 Billion Manulife Investment Management & Sovereign Wealth Fund Indonesia Investment Authority Form Strategic Partnership to Develop Infrastructure & Explore Investment Opportunities in Real Estate, Logistics Assets & Natural Capital Sectors in Indonesia
7th February 2024 – Manulife Investment Management with $746 billion AUM (Assets under Management) & sovereign wealth fund Indonesia Investment Authority (INA) have formed a strategic partnership to develop infrastructure & explore investment opportunities in real estate, logistics assets & natural capital sectors in Indonesia. Announcement: “ Manulife Investment Management and the Indonesia Investment Authority (INA), the sovereign wealth fund of Indonesia, jointly announced today a strategic partnership that will focus on the overarching goal to further develop infrastructure in Indonesia and explore investment opportunities in the real estate and natural capital sectors. The partnership, which has been formalized through the execution of a memorandum of understanding (MOU) between the two organizations, will aim to invest proprietary capital and collectively raise capital from third party investors, both domestic and international. The partners, who share a common objective to support sustainable and stable long-term growth, are also committed to pursue investment opportunities in various logistics assets in Indonesia and are set to explore additional joint investments through a fund structure. Serving the Indonesia market since 1996, Manulife Investment Management is one of Indonesia’s largest investment managers and brings in a wealth of experience in real assets development and asset management from Asia and globally. This extensive experience positions Manulife Investment Management as a trusted and reliable partner for investors seeking opportunities in Indonesia’s real assets market. As Indonesia’s first and only sovereign wealth fund, INA is tasked with a dual mandate: to contribute to Indonesia’s sustainable economic development, and to build wealth for future generations. In just under three years, INA, alongside its co-investor partners, has deployed more than US$3 billion, establishing strong relationships with a myriad of investors, including sovereign wealth funds, pension funds, asset managers, and strategic partners globally. Global supply chain diversification, increased foreign direct investment and the rapid growth of the manufacturing sector have boosted demand for logistics properties in Indonesia. While Indonesia is the second-largest e-commerce market in world, and the largest in Southeast Asia, the country is significantly undersupplied in terms of modern warehouse space. Indonesia’s e-commerce penetration rate is forecasted to increase from 57% in 2022 to 78% in 2025 and e-commerce revenue forecast to rise from US$68.5 billion in 2023 to US$104.1 billion by 2027.”
Peter Kim, Senior Managing Director and Head of Institutional Business, Asia Pacific (ex-Japan), Manulife Investment Management: “We are excited to enter into our first strategic partnership with INA and contribute to Indonesia’s economic progression. We have seen strong appetite through our conversations with institutional investors in Asia’s real assets sector and within Southeast Asia, Indonesia is one of the most attractive markets given its surging consumer class and the exponential growth of e-commerce. We recognize there is robust demand for high-quality logistics, data-centers and other new economy infrastructure assets in the country from both multi-national and domestic customers. Our collaboration with INA not only aims to meet the evolving needs of the real assets sector but also reflects Manulife Investment Management’s commitment to Indonesia, a key market in our private assets strategy for the fast-growing Southeast Asia region.”
Kenny Lam, Chief Investment Officer and Head of Transactions, Asia Pacific Real Estate, Manulife Investment Management: We are thrilled for the opportunity to partner with INA to execute our real estate investment strategy in Indonesia where we see exceptionally strong fundamentals and growth potential to expand our footprint and portfolio in the Asia Pacific region. We are committed to leveraging our global scale as well as local capabilities to provide solutions and create value on behalf of our partners and clients. Our plan is to acquire, develop and manage high quality industrial assets and data centers in Indonesia together with INA to achieve sustainable returns as well as ESG objectives.”
Ridha Wirakusumah, CEO, Indonesia Investment Authority: “Partnering with Manulife Investment Management, recognized globally for its leadership in real assets, aligns closely with our ongoing efforts to enhance Indonesia’s logistics and digital infrastructure. This collaboration leverages our combined strengths—Manulife’s global expertise and our deep local insights—to drive substantial progress in these critical sectors. Concentrating on the burgeoning logistics and data center markets not only aligns with the substantial growth in digitalization and e-commerce but also positions us to capitalize on the immense opportunities within Indonesia’s dynamic economy. Our joint efforts are rooted in a commitment to responsible, long-term investment, reflecting INA and Manulife Investment Management’s shared dedication to supporting Indonesia’s development in a sustainable manner. We aim to create value that benefits not just our partners but the wider Indonesian community.”
Manulife Investment Management develops and manages real estate assets for thousands of customers around the globe as part of its comprehensive private markets capabilities. Its Asia real estate team manages US$3.1 billion of real estate assets in the region totaling 14.2 million square feet. In recent years, it has focused its attention on logistics-related assets which the firm believes could generate value not just for investors but also for the markets it invests in as consumer consumption habits continue to shift to an online world. Manulife Investment Management is also the world’s largest natural capital investment manager, with nearly US$15 billion in assets under management in timberland and agriculture combined.
About Indonesia Investment Authority (INA)
Indonesia Investment Authority is Indonesia’s sovereign wealth fund mandated to increase investment to support the country’s sustainable development and build wealth for its future generations. INA conducts investment activities and collaborates with leading global and domestic investment institutions in sectors that strengthen Indonesia’s advantages and provide optimal risk-adjusted returns.
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.
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