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Junior credit

As an established and long-standing provider of junior capital in the market, we leverage our vast network of sponsor relationships and help leading North American middle market companies by providing subordinated and second-lien debt and preferred equity capital.

$3.5B

Invested since 19981

200+

private equity relationships through Manulife's private equity and credit platform

80/20

contractual yield to equity upside2

Date as of December 31, 2023

1 Represents Junior credit investments made by the U S based PE&C team on behalf of the Manulife investors and third parties since inception of the private credit program in 1998 2 Represents strategy target.

Junior credit investing

We lend and invest alongside private equity sponsors, providing patient, noncontrolling junior capital—including traditional subordinated and second-lien debt and structured equity—to established businesses that are led by experienced management teams aligned with their investors. With extensive industry experience, we focus our due diligence on critical issues such as whether the deal is a good fit for the controlling owner and the company management’s track record of value creation. Because we’ve been active in junior credit for decades, we understand that it’s critical to make and communicate decisions promptly to support the objectives of our private equity partners.

Investment criteria

We seek to support companies with the following characteristics:

  • Headquartered in North America or Europe
  • Involvement of an operationally oriented sponsor
  • Proven management teams
  • Meaningful competitive position in target markets
  • Favorable free cash flow generation with the capacity for additional cash flow growth
  • Operating and financial flexibility to manage through economic cycles
  • Demonstrated ability to grow

Industry focus

Our investment team has deep knowledge across all industry sectors and many sub-sectors. We provide junior credit to companies operating in industries as diverse as aerospace and defense, finance and insurance, healthcare, manufacturing, software, technology, and telecommunications.   

Why partner with Manulife Investment Management? 

Flexible capital with competitive pricing and structuring

A high rate of execution

Broad alignment of interests among all stakeholders rather than direct control over operations or the board of directors

An investment horizon of 5 to 7 years with the ability to hold for longer

Meet the team

Meet the junior credit team

Learn more

Looking for senior credit solutions?

Explore our senior credit solutions including financing leveraged buyouts, corporate growth, acquisitions, and balance sheet recapitalizations.

Learn more

Data as at June 30, 2023. Represents senior credit investments made by the PE&C team on behalf of the Manulife Investors and managed third party accounts since inception of the Senior Credit Strategy in 2017.