Junior credit

As an established and longstanding 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.

  • $3.1B 

    invested since 1998

  • 116

    issuers

  • 52

    sponsors

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

All information as of March 31, 2021, unless otherwise noted. All dollar amounts are in USD and may be rounded to the nearest billion.