Market updates and sector developments

Manulife Investment Management is to acquire London-based alternative credit manager CQS. The transaction will see CQS’s investment team continue to operate autonomously, though Manulife will take ownership of the firm’s brand and credit platform.

Following completion of the deal, CQS will benefit from exposure to new investors and the scaling of its distribution footprint, according to a statement. The business will continue to be led by ceo Soraya Chabarek, credit cio Craig Scordellis and ABS cio Jason Walker.

CQS has US$13.5bn in AuM and invests in CLOs, ABS, regulatory capital, structured credit and convertibles, in addition to corporate credit.

Michael Hintze, who founded CQS as a hedge fund manager in 1999, will launch a new firm following the deal. The new firm will continue to manage the hedge fund Directional Opportunities Fund and certain other mandates, which have not been included in the transaction.

Piper Sandler & Company acted as financial advisor and Simmons & Simmons was legal counsel to CQS on the deal. The transaction is due to close in early 2024.