Opportunistic credit in an evolving market: our approach

Opportunistic credit addresses gaps created by the constraints of traditional lending. The most compelling opportunities typically arise in situations that fall outside the mandates, comfort zones, or capacities of many conventional lenders. As a result, an allocation to opportunistic credit requires more than portfolio construction considerations. It demands an evaluation of a manager’s ability to move fluidly across the capital structure, underwrite with imperfect information, and dynamically adapt both underwriting and asset management approaches as circumstances evolve.

Opportunistic credit is best understood as complexity-oriented credit investing with selective equity participation.

Given this dynamic, we believe four attributes are central to manager differentiation:

• Sourcing: the ability to originate differentiated, less competitive opportunities
• Structuring: expertise across capital structure, including both debt and equity-like instruments
• Platform: the scale, experience, and capabilities to actively manage complex situations and influence outcomes over time
• Track record: demonstrated performance across at least one full market cycle 

Our approach: a platform designed and resourced for complexity

Manulife | Comvest Credit Partners’ opportunistic credit approach is designed to leverage both credit and equity experience and resources.

We evaluate investments through a dual lens, combining a lender’s focus on cash flow, collateral, and capital structure with an equity investor’s focus on growth and value creation. This perspective extends to portfolio management, allowing adaptation as situations evolve. It’s grounded in the following core elements:

• Differentiated sourcing and execution: We believe access to differentiated opportunities is a key driver of returns. Our multi-strategy platform and origination capabilities provide early visibility into a broad range of situations, many of which evolve from conventional financings into more complex opportunities that require tailored solutions. Early engagement often leads to proprietary transactions and to enhanced investment terms and protections.
• Disciplined, total-return-oriented structuring: Investments are structured with a credit-first orientation, emphasizing contractual income and downside protection, but also complemented by selective equity participation and a hands-on approach to enhance total return potential. Our 25+ years of private equity heritage, combined with more than 20 years in private credit, provide a differentiated perspective and capabilities in the middle market.
• Industry expertise and operational value creation: Sector specialization across key verticals supports deep market insights and disciplined underwriting, while in-house operational resources and a diverse investment team's skill set enable active engagement with portfolio companies as needed to drive value creation or recover capital.
• Track record: A demonstrated 25-year history of investing across credit cycles and varying market environments provides context for navigating a variety of non-standard, complex situations. 

Overview of our approach

Manager selection as the defining factor

Opportunistic credit offers exposure to differentiated opportunities beyond traditional lending, but outcomes are inherently execution-dependent. In a strategy defined by complexity and variability, manager selection is a primary driver of performance. Identifying managers with differentiated sourcing, disciplined structuring, and the platform to navigate evolving situations is critical to capturing the full potential of the asset class.

Discover our bespoke opportunistic capital financing solutions.

Learn more:

Examine the primary drivers of return and what differentiates our investment approach.

Discover the current market landscape and the dynamics driving today’s opportunity set.

Explore the role of opportunistic credit in portfolio construction.