Manulife Investment Management Closes Manulife Private Equity Partners II in partnership with AlpInvest

Rhea-AI Summary

Manulife Investment Management (Manulife IM) has announced the closing of approximately US$810 million in commitments for its Manulife Private Equity Partners II, L.P. (the Fund). This is the second private equity fund of funds raised by Manulife IM, aimed at providing investors with greater exposure to the growing private equity market. The Fund was seeded with a portfolio selected in partnership with AlpInvest, a subsidiary of Carlyle (NASDAQ: CG), and includes private equity fund interests and co-investments in North American buyout funds managed by over 30 leading private equity managers. The Fund is managed by Richard Tarr, Managing Director, Private Equity Funds at Manulife IM. Globally, Manulife IM's private equity and credit platform manages over US$25 billion in assets.

Positive

• Manulife Investment Management closed $810 million in commitments for its Private Equity Partners II fund.
• The Fund includes a diverse portfolio selected in partnership with AlpInvest.
• Manulife IM's global private equity and credit platform manages over $25 billion in assets.

Negative

• None.

Financial Analyst

The closing of US$810 million in commitments to Manulife Private Equity Partners II speaks volumes about the confidence investors have in Manulife Investment Management's (IM) strategy and the private equity market's potential. Given the existing portfolio's seeding in partnership with AlpInvest, this move leverages AlpInvest's expertise and the strong network of over 30 leading private equity managers. This diversification is significant as it mitigates risk while maximizing potential returns. The presence of well-known managers also lends credibility and stability to the Fund, appealing to investors wary of market volatility.

Short-term, it positions Manulife IM as a competitive player in the private equity sector, potentially increasing inflows from institutional investors. Long-term, the Fund's focus on North American buyouts can capitalize on regional economic growth, benefiting from robust corporate activity and favorable market conditions. Investors should watch how effectively Manulife manages these assets to gauge potential returns and risk management efficacy.

Market Research Analyst

From a market perspective, the successful closing of Manulife Private Equity Partners II highlights a broader trend towards increased interest in private equity investments. This sector has been gaining traction as investors seek alternatives to public markets, driven by the pursuit of higher returns and portfolio diversification. The partnership with AlpInvest and the involvement of Carlyle Group, a prominent name in global investments, further underscores this trend and enhances the Fund's appeal.

For retail investors, understanding the structure of a private equity fund of funds is crucial. It essentially means the Fund invests in other private equity funds, spreading exposure across various sectors and geographies, thus lowering individual investment risk. However, this also means the potential for higher fees due to the layered management. The Fund's strategic positioning in North American buyouts could be a key advantage, considering the region's economic stability and growth prospects. Investors should be aware of the longer investment horizons typical of private equity, which might not suit those seeking quick returns.

BOSTON, July 10, 2024 /PRNewswire/ - Manulife Investment Management (Manulife IM) announced today the closing of approximately US$810 million in commitments to Manulife Private Equity Partners II, L.P. (the Fund). The Fund is the second 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 AlpInvest, a subsidiary of global investment firm Carlyle (NASDAQ: CG), consisting of private equity fund interests and co-investments in North American buyout funds with more than 30 leading private equity managers.

"We are thrilled to have closed on Manulife Private Equity Partners II and have the opportunity to showcase 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 Investment Management.

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

"Manulife Private Equity Partners II 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.

Michael Hacker, Managing Director at AlpInvest Partners said, "After successfully partnering with Manulife IM to develop and anchor Manulife Private Equity Partners, L.P. in 2019, we are pleased to continue the collaboration between our firms. Having worked with Manulife IM to select the seed portfolio, we are excited to invest in the second fund which consists of high-quality North American buyout investments managed entirely by longstanding AlpInvest relationship GPs."

Globally, Manulife IM's private equity and credit platform has more than US$25 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

1. AUM of Private Equity & Credit ("PE&C") includes funded committed capital as of March 31, 2024. The total value includes $8.3B of unfunded commitments. All assets under management (AUM) are calculated on a fair value basis in U.S. dollars (USD) as of March 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 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 AlpInvest

AlpInvest, a subsidiary of Carlyle (NASDAQ: CG), is a leading global private equity investor with $80 billion of assets under management and more than 500 investors as of March 31, 2024. It has invested with over 360 managers and committed approximately $100 billion across primary commitments to private equity funds, secondary and portfolio finance transactions and co-investments. AlpInvest employs more than 230 people in New York, Amsterdam, Hong Kong, London, and Singapore. For more information, please visit www.carlyle.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/manulife-investment-management-closes-manulife-private-equity-partners-ii-in-partnership-with-alpinvest-302193479.html

SOURCE Manulife Investment Management

FAQ

What is the total commitment closed by Manulife Private Equity Partners II?

Manulife Private Equity Partners II closed approximately US$810 million in commitments.

Which company partnered with Manulife IM for the Fund's portfolio selection?

Manulife IM partnered with AlpInvest, a subsidiary of Carlyle (NASDAQ: CG), for the Fund's portfolio selection.

Who is managing Manulife Private Equity Partners II?

Richard Tarr, Managing Director, Private Equity Funds at Manulife IM, is managing the Fund.

How much in assets does Manulife IM's private equity and credit platform manage?

Manulife IM's private equity and credit platform manages over US$25 billion in assets.