Manulife unit to buy bulk of CQS from billionaire Michael Hintze to expand specialized offerings

financialpost.com:

Manulife Investment Management is buying most of billionaire Michael Hintze’s CQS in a bid to expand the Canadian investment firm’s specialized fixed-income investment strategies.

The Manulife Financial Corp. unit is acquiring the CQS credit platform, which has about US$13.5 billion of assets under management, and the CQS brand, one of the best-known names in alternative investing, according to a statement. The transaction is expected to be completed in early 2024, and financial terms weren’t disclosed.

“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,” Manulife Investment Management chief executive Paul Lorentz said in the statement. The unit has about $845 billion of assets under management.

“In Manulife Investment Management we have found the optimal long-term partner,” said Soraya Chabarek, the chief executive of London-based CQS. “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.”

CQS has managed research-driven alternative credit strategies for more than two decades, including corporate credit, asset backed securities, collateralized loan obligations, convertible bonds and structured credit.

The acquisition is the latest in a wave of deals in the asset-management industry as large, traditional firms seek to expand into alternatives by buying more boutique firms. The deal is an opportunity for the firm to offer more fixed income exposure to retail, retirement and institutional clients as rates rise and investors seek more sophisticated variations on the asset class, Luke