Manulife Investment Management Closes Manulife Private Equity Partners III in partnership with Ardian

Rhea-AI Summary

Manulife Investment Management has successfully closed Manulife Private Equity Partners III with approximately US$660 million in commitments. The fund, representing the company's third private equity fund of funds, was established in partnership with Ardian, featuring a portfolio of private equity fund interests and co-investments in North American buyout funds with over 15 leading private equity managers.

The fund will be managed by Richard Tarr, Managing Director of Private Equity Funds at Manulife IM. The company's private equity and credit platform currently manages US$28 billion in assets, including $9.3 billion of unfunded commitments, focusing on various strategies across North America and Asia middle markets as of December 31, 2024.

Positive

• Successful closing of US$660 million fund demonstrates strong fundraising capability
• Partnership with leading investment house Ardian enhances market positioning
• Diversified portfolio across 15+ leading PE managers reduces investment risk
• Substantial AUM of US$28 billion shows significant market presence in private markets

Negative

• Large unfunded commitments of $9.3 billion could pressure capital requirements

Insights

Private Markets Investment Analyst

Manulife's closure of a $660 million private equity fund of funds represents a strategic expansion of their alternative investment platform. This third installment in their PE fund series leverages a partnership with Ardian, enhancing their market positioning in the private capital space.

The fund's structure—involving interests and co-investments across 15+ leading North American buyout managers—provides Manulife with both fee generation capabilities and portfolio diversification. This approach allows institutional clients to access private markets through a single vehicle while Manulife captures management fees across the fund's lifecycle.

Particularly noteworthy is how this strengthens Manulife's private markets platform, which now manages $28 billion in assets across private equity and credit investments. The secondary market strategy employed here (purchasing existing PE interests) typically offers accelerated capital deployment and potentially reduced J-curve effects compared to traditional primary commitments.

For Manulife Financial, this represents incremental growth in their higher-margin asset management business. While modest relative to their $46.7 billion market cap, the fund closing demonstrates continued momentum in building their alternatives franchise, which typically generates superior fee rates compared to traditional asset classes. The Ardian partnership also provides strategic benefits beyond this single transaction through ongoing relationship enhancement with a leading global private markets player.

BOSTON, April 14, 2025 /PRNewswire/ - Manulife Investment Management, ("Manulife IM") a company of Manulife Wealth & Asset Management, announced today the closing of approximately US$660 million in commitments to Manulife Private Equity Partners III, L.P. (the "Fund"). The Fund is the third private equity fund of funds raised by Manulife IM as part of its ongoing effort to provide specialized solutions for investors seeking greater exposure to opportunities in a growing private equity market. The Fund was seeded with an existing portfolio selected in partnership with Ardian, a world-leading private investment house, consisting of private equity fund interests and co-investments in North American buyout funds with more than 15 leading private equity managers.

"We are excited to have closed on Manulife Private Equity Partners III and have the opportunity to demonstrate our commitment to general partners as a provider of stable sources of capital and our patient approach to building value, as well as the solutions that are available to our clients," said Vipon Ghai, Global Head of Private Equity and Credit at Manulife IM.

Management of the Fund will be led by Richard Tarr, Managing Director, Private Equity Funds, Manulife IM.

"Manulife Private Equity Partners III brings a diverse portfolio of investments and the potential for growth and value creation to investors who seek access to the expertise and knowledge of multiple managers across sectors and industries." said Mr. Tarr.

Vladimir Colas, Executive Vice-President and Co-Head of Secondaries & Primaries at Ardian said, "We are proud to partner with Manulife Investment Management on this transaction.  The Manulife IM team has a longstanding track record investing in private equity funds and co-investments alongside high-quality sponsors, making them an attractive strategic partner for Ardian. This partnership reflects our shared commitment to delivering value in this growing asset class." 

Globally, Manulife IM's private equity and credit platform has US$28 billion in assets under management focused on primary funds, equity co-investments, secondaries, senior credit and junior credit in North America and Asia middle markets.¹ The firm has long-standing private markets expertise to help its clients capitalize on inefficient markets, add diversification potential, and seek attractive risk-adjusted returns across a range of strategies including private equity and credit, agriculture, infrastructure, real estate, and timberland.

1. AUM of Private Equity & Credit ("PE&C") includes funded committed capital as of December 31, 2024. Assets Under Management ("AUM") includes funded capital and $9.3 billion of unfunded commitments. All assets under management (AUM) are calculated on a fair value basis in U.S. dollars (USD) as of December 31, 2024. Data includes assets managed by Manulife Investment Management and its affiliates on behalf of Manulife's Canadian and U.S. general accounts, as well as certain third-party investors. Investment advisory services to third-party investors and certain affiliated investors are offered by Manulife Investment Management Private Markets (US) LLC (Manulife IM PM (US).

About Manulife Wealth & Asset Management

As part of Manulife Financial Corporation, Manulife Wealth & Asset Management provides global investment, financial advice, and retirement plan services to 19 million individuals, institutions, and retirement plan members worldwide. Our mission is to make decisions easier and lives better by empowering people today to invest for a better tomorrow. As a committed partner to our clients and as a responsible steward of investor capital, we offer a heritage of risk management, deep expertise across public and private markets, and comprehensive retirement plan services. We seek to provide better investment and impact outcomes and to help people confidently save and invest for a more secure financial future. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

About Ardian

Ardian is a world-leading private investment house, managing or advising $177bn of assets on behalf of more than 1,850 clients globally. Our broad expertise, spanning Private Equity, Real Assets and Credit, enables us to offer a wide range of investment opportunities and respond flexibly to our clients' differing needs. Through Ardian Customized Solutions we create bespoke portfolios that allow institutional clients to specify the precise mix of assets they require and to gain access to funds managed by leading third-party sponsors. Private Wealth Solutions offers dedicated services and access solutions for private banks, family offices and private institutional investors worldwide. Ardian's main shareholding group is its employees and we place great emphasis on developing its people and fostering a collaborative culture based on collective intelligence. Our 1,050+ employees, spread across 19 offices in Europe, the Americas, Asia and Middle East are strongly committed to the principles of Responsible Investment and are determined to make finance a force for good in society. Our goal is to deliver excellent investment performance combined with high ethical standards and social responsibility.  

At Ardian we invest all of ourselves in building companies that last. 

Media Contacts:

Manulife Investment Management

Elizabeth Bartlett
Elizabeth_Bartlett@Manulife.com
857-210-2286

Ardian

H/Advisors Abernathy
ardian@h-advisors.global 

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SOURCE Manulife Investment Management

FAQ

How much capital did Manulife Private Equity Partners III (MFC) raise in its closing?

Manulife Private Equity Partners III raised approximately US$660 million in commitments.

What is the total assets under management of Manulife's private equity platform as of December 2024?

Manulife IM's private equity and credit platform manages US$28 billion in assets, including $9.3 billion in unfunded commitments.

How many private equity managers are involved in Manulife's (MFC) new fund?

The fund includes partnerships with more than 15 leading private equity managers in North American buyout funds.

Who is managing Manulife Private Equity Partners III fund?

Richard Tarr, Managing Director of Private Equity Funds at Manulife IM, leads the management of the fund.