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Manulife Investment Management Closes Manulife Strategic Secondaries Fund L.P. as GP-led Secondary Program Reaches More Than $600 Million

Published 2024-04-04, 08:50 a/m
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BOSTON, April 4, 2024 /PRNewswire/ -  Manulife Investment Management (Manulife (TSX:MFC) 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."

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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.

About Manulife Investment Management

Manulife Investment Management is the brand for the global wealth and asset management segment of Manulife Financial (NYSE:MFC) 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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