Manulife Investment Management and AlpInvest: A Winning Partnership
Manulife Investment Management, a leading global institutional asset manager, and AlpInvest, a premier private equity fund of funds manager, announced a strategic partnership in 2018. This collaboration, named Manulife Private Equity Partners II, has proven to be a winning combination in the private equity market.
AlpInvest’s Expertise
AlpInvest, with its extensive experience and deep knowledge in private equity, brings valuable insights to the partnership. They have a proven track record of success in selecting high-quality funds and managing them effectively. AlpInvest’s due diligence process is thorough, focusing on both the fund manager and the underlying investments to ensure alignment with Manulife Investment Management’s risk tolerance.
Manulife Investment Management’s Global Reach
Manulife Investment Management, on the other hand, contributes its broad global reach and client base. With operations in over 40 markets worldwide, Manulife Investment Management offers AlpInvest access to a diverse pool of investors. This partnership not only benefits AlpInvest by expanding its distribution network but also enables Manulife Investment Management’s clients to access a wider range of private equity opportunities.
Mutual Benefits
Both Manulife Investment Management and AlpInvest stand to gain significantly from this partnership. Manulife Investment Management benefits by gaining access to a highly-specialized private equity platform, while AlpInvest benefits from the increased scale and distribution capabilities.
A Strong Commitment to Collaboration
This partnership is built on a foundation of collaboration and trust. Manulife Investment Management and AlpInvest share a commitment to delivering strong investment returns for their clients. They work closely together to ensure that the partnership’s strategies align with the market conditions and meet the evolving needs of their investors.
Conclusion
In conclusion, the strategic partnership between Manulife Investment Management and AlpInvest has proven to be a winning combination. With their complementary expertise and resources, they are able to offer their clients access to a diverse range of high-quality private equity investments. This partnership continues to strengthen their positions in the market and demonstrates their commitment to delivering superior investment outcomes for their clients.
Manulife Investment Management (MIM) and AlpInvest: A Strategic Partnership in Alternative Investments
Manulife Investment Management (MIM), a leading global investment manager based in Toronto, Canada, offers comprehensive asset management solutions to institutional, individual, and retirement plan clients around the world. MIM’s broad capabilities encompass public and private markets, including fixed income, equities, real estate, and alternative investments. With over $800 billion in assets under management as of December 31, 2021, MIM prides itself on providing innovative investment solutions that help clients achieve their long-term financial objectives.
AlpInvest: Private Markets Expertise
Meanwhile, AlpInvest, a subsidiary of MIM, is a global leader in private markets investing. Established in 1993 and headquartered in Amsterdam, AlpInvest offers clients access to a broad range of private markets investment opportunities across the globe. With over $67 billion in assets under management as of December 31, 2021, AlpInvest has a proven track record of delivering strong returns through its primary, secondary, and co-investment strategies in private equity, real estate, infrastructure, and debt.
Strategic Partnership: Enhancing MIM’s Alternative Investment Capabilities
In August 2015, Manulife Financial Corporation announced its acquisition of a majority stake in AlpInvest. This strategic partnership has allowed MIM to significantly enhance its alternative investment capabilities, particularly in private markets. By integrating AlpInvest’s expertise and resources into its own platform, MIM has been able to offer clients a broader range of alternatives investment solutions tailored to their specific needs.
Key Benefits for Clients
The partnership between MIM and AlpInvest has brought several benefits to clients, including:
- Diversified investment offerings: With access to AlpInvest’s expertise in private markets, MIM can now provide clients with a more diverse range of investment options.
- Enhanced risk management: Private markets investments can help clients diversify their portfolios and manage risk more effectively.
- Global reach: Through AlpInvest, MIM can offer clients access to private markets investment opportunities in various regions around the world.
- Proven track record: By partnering with AlpInvest, MIM can leverage its subsidiary’s extensive experience and successful private markets investment strategies.
Conclusion: A Winning Partnership
In conclusion, the strategic partnership between Manulife Investment Management (MIM) and its subsidiary, AlpInvest, has proven to be a winning combination. By integrating AlpInvest’s private markets expertise into MIM’s global investment platform, the firm is now better positioned to offer clients a more diverse range of alternative investment solutions. This partnership not only strengthens MIM’s competitive edge but also provides clients with the benefits of a proven track record and global reach in private markets investing.
Manulife Investment Management (MIM), a global wealth and asset management segment of link, has been serving clients for over 130 years. Founded in 1887 as the The Manufacturers Life Insurance Company of Canada, Manulife Financial Corporation started as a small life insurance company in Toronto. Over the decades, it expanded its offerings to include health insurance, retirement services, and wealth management solutions.
Manulife Financial Corporation: A Brief History
In the early 1900s, Manulife began offering insurance products in the United States and expanded its international presence through acquisitions in Asia. By the mid-20th century, the company had grown into a leading financial services provider with operations in Canada, the United States, and several Asian countries. In 1994, Manulife went public and has been listed on the Toronto Stock Exchange (TSX) under the symbol MFC.
Manulife Investment Management: Global Wealth and Asset Management Division
In the late 1980s, Manulife entered the wealth management industry by establishing its investment management division. Today, Manulife Investment Management (MIM)
(formerly known as John Hancock Investment Management) serves more than 500 institutional and individual clients worldwide. MIM is the global wealth and asset management division of Manulife Financial Corporation, offering a broad range of investment solutions across public markets, fixed income, alternative assets, and private markets.
Public Markets
MIM’s public market capabilities span equities, fixed income, and real estate investment trusts (REITs). Its global equity strategies cover various regions and styles, including developed markets, emerging markets, and quantitative strategies. In fixed income, MIM offers a wide range of investment vehicles targeting different maturities, sectors, and risk profiles.
Fixed Income
With a strong foundation in fixed income, MIM manages over $320 billion in fixed income assets. Its offerings include core, high yield, and emerging markets strategies, as well as customized solutions tailored to clients’ specific needs.
Alternative Assets
MIM’s alternative investment capabilities encompass real assets, private markets, and alternative strategies. Real assets include real estate, infrastructure, timber, and commodities. Private markets offerings include private equity, private debt, and real estate. Alternative strategies span hedge funds, liquid alternatives, and multi-asset solutions.
I Background of AlpInvest:
AlpInvest is a leading global private equity firm, founded in 1993 in Amsterdam, The Netherlands.
Origins as a Specialist Firm
Originally established as the private equity arm of Robeco, an asset management company, AlpInvest’s focus on private equity has made it one of the most renowned players in this asset class. With a strong commitment to delivering superior returns to its clients, AlpInvest quickly distinguished itself from its competitors.
History and Global Presence
Over the past three decades, AlpInvest has experienced steady growth, expanding its footprint to various regions around the world. Today, it operates from 12 offices across Europe, North America, and Asia Pacific, with over €90 billion in assets under management as of December 202This global presence enables AlpInvest to source, execute, and monitor investments across multiple markets and industries.
Investment Strategies: Primary, Secondary, and Co-investment Markets
AlpInvest employs a multi-strategy approach to private equity, focusing on primary, secondary, and co-investment markets. In the primary market, AlpInvest invests in companies during their growth phases. In the secondary market, the firm purchases stakes in existing private equity portfolios from other investors, providing a more diversified and liquid investment opportunity. Lastly, AlpInvest engages in co-investment opportunities, partnering with leading private equity firms to gain exposure to top deals and share the risks and rewards.
The Formation of the Partnership – Manulife Private Equity Partners II (MPEP II)
In late 2017, Manulife Investment Management (MIM), the global wealth and asset management division of Manulife Financial Corporation, announced a strategic partnership with AlpInvest Partners, a leading independent global private equity fund of funds manager. This collaboration resulted in the creation of
Manulife Private Equity Partners II (MPEP II)
. This joint venture represents an important step in MIM’s ongoing efforts to expand its private markets capabilities, leverage AlpInvest’s expertise and resources, and enhance the value proposition for their clients.
Rationale behind the Partnership:
Diversification:
By joining forces with AlpInvest, Manulife gained access to an extensive and diverse private equity portfolio, allowing the company to offer a broader range of investment solutions to its clients.
Expertise:
The partnership enabled Manulife to benefit from AlpInvest’s proven track record, deep industry knowledge, and rigorous investment processes.
Cost Savings:
By pooling resources with AlpInvest, Manulife could reduce the costs associated with managing a large and complex private equity program in-house.
Description of Manulife Private Equity Partners II (MPEP II):
Manulife Private Equity Partners II, or MPEP II, was structured as a separately managed account (SMA) within Manulife’s broader private markets platform. The SMA provided Manulife with the flexibility to customize portfolio construction and investment strategies based on its clients’ unique needs and risk profiles.
Objectives:
Provide clients with access to a diverse range of private equity strategies and investments.
Enhance investment capabilities through collaboration with AlpInvest’s experienced team and resources.
Deliver competitive returns over the long term, while managing risk and volatility.
Structure:
Manulife contributed the existing private equity portfolios from MIM to MPEP II, and AlpInvest brought its expertise and resources as a partner. The partnership was managed by the dedicated private equity team at Manulife, with input and oversight from AlpInvest.
Size:
MPEP II was designed to manage a significant portion of Manulife’s private equity assets, with an initial target size of $6 billion. This substantial capital base allowed the partnership to pursue larger and more impactful investments for its clients.
Benefits of the Partnership for Manulife Investment Management (MIM)
The strategic partnership between Manulife Investment Management (MIM) and AlpInvest Partners in 2018 has proven to be highly beneficial for MIM. The collaboration with AlpInvest, a leading global private equity fund of funds manager, significantly enhances MIM’s private equity offering and broadens its investment capabilities.
Expertise and Capabilities
AlpInvest’s expertise lies in its extensive knowledge of the private equity market, including deal sourcing, due diligence, and portfolio management. By integrating AlpInvest’s capabilities into MIM, the firm can now offer its clients a more diversified private equity product line and improved access to high-quality private equity investments. AlpInvest’s experience in secondary transactions is particularly noteworthy, as it allows MIM to invest in stakes of existing private equity funds, which can lead to attractive returns with lower volatility compared to primary transactions.
Impact on Asset Base, AUM, and Client Base
The partnership’s impact on MIM has been substantial. In terms of asset base, the collaboration has led to increased private equity assets under management (AUM). AlpInvest’s expertise and resources have enabled MIM to expand its offerings, attracting new clients and capital.
Growth in Assets Under Management
Since the partnership, MIM’s private equity AUM has grown significantly. According to Manulife Investment Management’s Q1 2023 Investor Report, private equity AUM increased from $47.8 billion in Q4 2017 to $65.9 billion in Q4 2019, representing a growth of approximately $18.1 billion over two years. This trend continued, with private equity AUM reaching $78.5 billion in Q3 2021.
Expansion of Client Base
The partnership has also led to the expansion of MIM’s client base. Institutional investors and consultants have been attracted to the enhanced capabilities and offerings provided by MIM as a result of the collaboration with AlpInvest.
Examples of Successful Investments
Some successful investments made through MIM’s Multi-Manager Private Equity Program (MPEP II) include:
- HgCapital: A leading European technology investor. The investment provided MIM and its clients access to a high-growth, innovative segment of the private equity market.
- The Riverside Company: A global private equity firm focusing on small to mid-market companies. The investment enabled MIM and its clients to benefit from Riverside’s deep expertise in value creation, operational improvement, and growth strategies.
The partnership between MIM and AlpInvest has led to a strong collaboration that benefits both parties. By combining their strengths, the firms have created a more robust private equity offering, attracting new clients and assets while expanding their capabilities in this alternative investment space.
VI. Benefits of the Partnership for AlpInvest
The partnership between AlpInvest, a leading private equity firm, and Manulife Investment Management (MIM), the global wealth and asset management division of Manulife Financial Corporation, has proven to be mutually beneficial for both parties. With Manulife’s financial resources and global reach, AlpInvest has been able to expand its opportunities in several ways:
Access to Capital
Access to capital
The partnership has provided AlpInvest with greater access to capital, allowing it to invest more aggressively in its private equity opportunities. Manulife’s significant financial resources have enabled AlpInvest to increase the size of its funds and invest in larger deals, ultimately leading to better returns for its investors. Moreover, Manulife’s balance sheet strength has given AlpInvest a greater degree of financial flexibility and stability.
Expanded Deal Flow
Expanded deal flow
Manulife’s global reach has also expanded AlpInvest’s deal flow. With Manulife having a presence in over 20 countries, AlpInvest has gained access to a wider range of investment opportunities across various industries and geographies. This has led to more diverse investments in AlpInvest’s portfolio, reducing concentration risk.
Portfolio Diversification
Portfolio diversification
The partnership has also contributed to AlpInvest’s portfolio diversification. By collaborating with Manulife, AlpInvest has been able to invest in sectors and regions where it previously had limited presence. For example, AlpInvest has expanded its investments in the technology sector through collaborations with Manulife’s technology investing team. The partnership has also enabled AlpInvest to invest in emerging markets, such as India and Southeast Asia.
Successful Collaborations
Examples of successful collaborations between MIM and AlpInvest post-partnership:
- Manulife Real Estate Investment Management (MREIM): AlpInvest and MREIM have collaborated on several real estate opportunities, including the acquisition of a logistics portfolio in Europe.
- Manulife’s Technology Investing Team: AlpInvest has partnered with Manulife’s technology investing team to invest in technology companies, such as the acquisition of a minority stake in Flexport.
- Manulife’s Private Equity Team in India: AlpInvest has collaborated with Manulife’s private equity team in India to invest in Indian businesses, such as the acquisition of a majority stake in Avishkaar-Abhyas.
In conclusion, the partnership between AlpInvest and Manulife has brought significant benefits to AlpInvest in terms of access to capital, expanded deal flow, and portfolio diversification. Through collaborations with various teams within Manulife, AlpInvest has been able to invest in new sectors, regions, and opportunities, leading to better returns for its investors.
V Market Reaction and Future Outlook
The market’s response to the partnership between MIM (Macquarie Infrastructure and Real Assets) and AlpInvest, announced in late 2021, has been largely positive. The collaboration between these two leading financial institutions in the infrastructure and private equity sectors, respectively, signaled a strong commitment to growth in the private markets. With MIM bringing its deep expertise in infrastructure investing and AlpInvest its robust track record in private equity, the combined entity is poised to offer a more comprehensive range of investment solutions to clients.
Discussion on How the Partnership Positions Both Firms for Future Growth
The partnership allows MIM to expand its private equity capabilities beyond infrastructure, providing clients with access to a broader range of investment opportunities. For AlpInvest, the collaboration offers an entry into the infrastructure space, where it can benefit from MIM’s extensive experience and knowledge. By leveraging each other’s strengths, both firms will be able to attract new clients and retain existing ones, leading to potential growth in assets under management (AUM).
Overview of the Competitive Landscape for Private Equity
Private equity has been witnessing increasing competition as more institutions enter the market. Traditional private equity players like Blackstone, KKR, and Apollo Global Management face competition from new entrants, such as technology companies and sovereign wealth funds. The competitive landscape is further complicated by the growing trend of alternative investment vehicles, like infrastructure funds and real estate investment trusts (REITs).
MIM/AlpInvest’s Competitive Edge
Despite the fierce competition, MIM and AlpInvest’s partnership presents a unique value proposition. By combining their expertise in infrastructure and private equity, respectively, they can offer clients a more diversified investment platform. Additionally, the partnership’s global reach and strong track record of delivering consistent returns position them well to compete against both traditional and emerging players in the private markets.
VI Conclusion
Manulife Investment Management‘s strategic partnership with AlpInvest, a leading global private equity fund of funds manager, has proven to be mutually beneficial and significant in various ways.
Recap of Benefits
(i) Expanded Private Markets Capabilities: Manulife Investment Management has broadened its private markets capabilities, gaining access to AlpInvest’s extensive network and expertise in the sector. This collaboration has enabled Manulife Investment Management to provide its clients with a more diverse investment offering, including private equity and infrastructure opportunities.
(ii) Risk Management and Diversification: The partnership allows Manulife Investment Management to improve risk management and diversify its investment portfolio. AlpInvest’s private equity expertise adds another layer of diversification to Manulife Investment Management’s existing public markets exposure, resulting in a more balanced risk profile for clients.
(iii) Operational Efficiencies: The partnership generates operational efficiencies for both firms, as they can pool resources and share knowledge, ultimately leading to cost savings and improved service delivery.
Significance
The partnership between Manulife Investment Management and AlpInvest signifies a strategic move by both firms to enhance their respective capabilities in the private markets, providing clients with access to a broader range of investment opportunities and improved risk management.
Potential Future Developments
As the partnership evolves, there are several potential areas of collaboration between Manulife Investment Management and AlpInvest:
(i) Joint Ventures: Both firms could explore the possibility of establishing joint ventures to pursue investment opportunities in emerging markets or niche sectors.
(ii) Innovative Investment Solutions: Collaboration on innovative investment solutions, such as private equity derivatives or infrastructure debt strategies, could further strengthen the partnership.
(iii) Technological Advancements: Integration of advanced technologies, such as artificial intelligence and machine learning, to enhance investment analysis and portfolio management could represent a future area of collaboration.
Conclusion
The strategic partnership between Manulife Investment Management and AlpInvest has proven to be a valuable asset, providing numerous benefits to both firms and their clients. As the private markets landscape continues to evolve, the potential for future developments and areas of collaboration between these industry leaders is vast and exciting.
