Senior credit

Our partners and borrowers benefit from flexible, custom capital solutions from senior secured direct lending investment structures that can include last-out and second-lien loans. Sitting ahead of investors in a company's subordinated debt and equity, investors in senior credit get paid first by providing secured first-lien, first-priority loans directly to middle market businesses.


Why senior credit?

 

North American middle market businesses with a history of stable, diversified free cash flows frequently make model borrowers. Direct lenders—investors providing senior credit to such businesses—can pursue an attractive mix of:

Strong yields over comparable quality broadly syndicated loans and corporate bonds

Capital preservation through senior secured loans’ priority in a company’s capital structure

Potential floating-rate income benefits paired with floor protections

Direct lending outlook: four expectations for 2024

Offering the potential for attractive yields, reduced volatility, and portfolio diversification, this substantial segment of the private credit market seems to be becoming a core allocation for insurers, pensions, family offices, and income investors of all stripes.

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What is private credit?

While investors have long relied on bonds and broadly syndicated loans to generate yield, the growing prominence of private credit is expanding the universe of income investing. But what exactly is private credit, and how can investors benefit by allocating to this asset class?

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What sets us apart?

Cross-team coordination strengthens origination

Shared intelligence and combined origination efforts with our junior capital, equity co-investment, primary funds, and secondaries teams facilitate broad coverage and an expansive credit opportunity funnel across lower, core, and upper middle markets.

Evidence-based underwriting of higher-potential business profiles

A rigorous assessment of a company’s value proposition, operating history, customer diversification, debt service capacity, and industry dynamics provides insight into the stability and sustainability of its free cash flow generation.

Resources of a leading global financial services group

The stability and scale of our organization’s permanent capital base and 125+ year history make us a partner of choice to leading private equity firms, middle market companies, and institutional investors around the world.

Our portfolio

We believe that disciplined underwriting and deliberate diversification—by issuer, sponsor, and industry—help drive consistent returns while maintaining principal preservation across a variety of market conditions. Our fundamental senior credit disciplines support a well-designed and consistent approach to portfolio construction and stable risk-adjusted returns

$6.1B

invested since 2017

211

issuers

100+

sponsors

Data as at June 30, 2024.

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.

 

Target portfolio features

 

We focus on directly originated senior secured loans in middle market companies backed by skilled private equity sponsors. Our approach to senior credit investing includes diversity, principal preservation, direct-to-private equity originations, and premium yields to support a well-designed, resilient portfolio with an attractive risk-adjusted return profile.

Diversity

• Source

• Issuer

• Industry

• Product

• Vintage

Principal preservation

• First lien

• First priority

• Financial covenants

Direct-to-PE originations

• Direct diligence

• Direct influence on documentation

• Direct access for portfolio management

Income

• Premium yields to large loan market comparables

• Recurring cash distributions

Senior credit capital solutions

We provide senior credit solutions to finance leveraged buyouts, corporate growth, acquisitions, and balance sheet recapitalizations. Many of our partners consider us a valuable investment partner due to the speed at which we make decisions, our long-term, patient approach toward building value, and our deep investment experience and industry knowledge.

Investment criteria

We seek to support companies with the following characteristics:

  • Headquartered in North America
  • 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
  • Proven management teams

Industry focus

Our investment team has deep knowledge across a variety of industries, including aerospace and defense, business services, financial and insurance services, healthcare, manufacturing, software, technology, and telecommunications.

Our team

Led by industry veterans who have managed through multiple economic cycles, our senior credit team has decades of direct investing experience. Throughout their careers, our team’s leaders have originated, underwritten, and managed combined financings estimated at over $40 billion.

Devon Russell

Senior Managing Director, Co-Head of Senior Credit

Devon is a senior managing director, responsible for managing Manulife Investment Management’s senior credit business. He joined Manulife Investment Management PE&C in May 2016 and has 29 years of experience. Prior to joining Manulife, Devon spent 12 years at Madison Capital Funding, a middle market direct lending platform, where he served as a leader and member of the executive and investment committees and was responsible for strategic and capital market activities, including loan syndications, third-party asset management, and joint ventures for Madison Capital’s mezzanine and unitranche credit products. Prior to joining Madison Capital, Devon spent 9 years at Banc of America Securities, where he served as a senior structurer in the sponsor leveraged finance group and a loan syndications structurer supporting the middle market group and the media/telecommunications group.

  • Education: B.A., Economics and Political Science, M.B.A., Indiana University
  • Joined the company: 2016
  • Began career: 1994
Devon Russell

Mike King

Senior Managing Director, Co-Head of Senior Credit

Mike is a senior managing director, responsible for managing Manulife Investment Management’s senior credit business. He joined Manulife Investment Management PE&C in January 2017 and has 29 years of experience. Prior to joining Manulife, Mike was head of the loan products group at BMO Global Asset Management, where he was primarily involved in credit selection, portfolio management, and fund raising, taking AUM from $0 to $1 billion across three separate middle market CLO vehicles. Prior to BMO, Mike spent nearly 20 years in key senior credit management roles at leading middle market debt providers, including Pangaea Asset Management (founder), GE Antares, Antares Capital, PPM America, and First National Bank of Chicago. He was an investment committee member at both BMO and Pangaea. 

  • Education: B.A., Economics, Marquette University; M.B.A., Finance, DePaul University
  • Joined the company: 2017
Mike King

Joseph Romic

Managing Director, Head of Originations, Senior Credit

Joe is primarily responsible for managing the marketing and origination functions of the senior credit business. Prior to joining the firm, he spent over 8 years at American Capital, where he served as a managing director in the sponsor finance group. Before that, he spent 4 years as a director in the Goldman Sachs Specialty Lending Group and 13 years in the sponsor finance units of GE Capital and Heller Financial. Joe also spent over 2 years at the start of his career with KPMG Peat Marwick on the audit staff.

  • Education: B.S., Accounting, Illinois Wesleyan University; Masters, Finance, Northwestern University–Kellogg Graduate School of Management
  • Joined the company: 2017
  • Began career: 1989
Joseph Romic

Eric Barton

Managing Director, Senior Credit

Eric is responsible for originating and evaluating investment opportunities in support of the acquisition and growth capital needs of the firm’s private equity clients. He has spent over 20 years evaluating and structuring investment opportunities across a variety of asset classes, including senior, mezzanine, and equity. Prior to joining the firm, he served in the origination and underwriting functions at Crescent Capital and NewStar Leveraged Finance, and before that, he was the head of portfolio management and research for Mesirow Investment Management Partners, where he helped lead the formation of a joint venture between Mesirow Financial and Mubadala Development Company in the United Arab Emirates. Earlier in his career, Eric held investment positions at CapX Partners and Deutsche Bank Asset Management.

  • Education: B.A., Mathematics, Illinois State University; M.B.A., The University of Chicago Booth School of Business
  • Joined the company: 2017
  • Began career: 1997
Eric Barton

Brendan Donovan

Managing Director, Senior Credit

Brendan is responsible for originating and evaluating investment opportunities in support of the acquisition and growth capital needs of the firm’s private equity clients. Prior to joining the firm, he served in the origination and underwriting functions at CapitalSource, with a focus on healthcare and generalist industry verticals, and before that, he held several positions at GE Antares, which included underwriting and portfolio management as well as structuring and syndicating middle market leveraged loans. Brendan began his career in the financial management program at GE Capital.

  • Education: B.B.A., Finance, University of Massachusetts Amherst; M.B.A., Northwestern University–Kellogg School of Management
  • Joined the company: 2018
  • Began career: 2004
Brendan Donovan

Jeff Bottcher

Managing Director, Head of Underwriting and Portfolio Management, Senior Credit

Jeff is responsible for leading transaction underwritings and portfolio management for the senior credit business. Prior to joining the firm, he was a senior vice president at Antares Capital (and its predecessors), where he spent over 12 years underwriting middle market leveraged loans to private equity-owned companies.

  • Education: B.A., History, Wake Forest University
  • Joined the company: 2017
  • Began career: 2000
Jeff Bottcher

Ryan Reko

Managing Director, Senior Credit

Ryan is responsible for leading transaction underwritings and portfolio management for the senior credit business. Prior to joining the firm, he was a director in the sponsor finance group at CIT Group, where he spent 10 years underwriting senior credit for private equity-sponsored transactions. Ryan holds the Chartered Financial Analyst designation.

  • Education: B.S., Finance, University of Colorado at Boulder; M.S., Finance, Villanova University
  • Joined the company: 2017
  • Began career: 2007
Ryan Reko

Maila Chuong

Director, Head of Capital Markets, Senior Credit

Maila is a Director, responsible for leading the firm’s capital markets activities including structuring, pricing, and executing transactions; lender and co-investor relationship management; and market research and reporting. Prior to joining Manulife, Maila spent nine years in the capital markets team of Antares Capital, where she was responsible for structuring and syndicating leverage loan transactions for middle market PE-owned businesses. Prior to Antares, Maila was with the bank loan group of GE Capital, where she was focused on underwriting broadly syndicated cash flow deals. She began her career as a fixed income research analyst at GE Asset Management.

  • Education: B.B.A., Finance, Loyola University Chicago
  • Joined the Company: 2022
  • Began career: 2005
Maila Chuong

Related viewpoints

Direct lending outlook: four expectations for 2024

Learn why this very moment represents an attractive entry point for direct lending—and why it’s likely to continue shining as a critical part of a diversified portfolio.
Read more

Past performance does not guarantee future results.

Contact us

Joseph Romic

Managing Director, Head of Originations, Senior Credit

312-985-8134| jromic@manulife.com

Leigha Schuessler

Managing Director, Business Development and Investor Relations, Private Equity and Credit

857-205-9422 | lhaynes@jhancock.com

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