#Canada #Toronto #Manulife #CQS Investment Management #Regulatory Capital

Manulife and CQS Investment Management Join Forces

On November 11, 2025, Manulife | CQS Investment Management (MCQS) proudly announced the successful closure of its Regulatory Capital Vintage III, drawing in an impressive total of $1.1 billion. This significant funding was garnered through the Manulife CQS Regulatory Capital Relief III Fund and various separately managed accounts.

The closing of this vintage further cements MCQS’s reputation and expertise within the niche domain of regulatory capital, a field they've been deeply immersed in since 2014. By leveraging their extensive market insight and strong relationships with issuers, MCQS has refined its strategies for accessing robust investment opportunities in regulatory capital.

Soraya Chabarek, the President and CEO of MCQS, spoke about the vital role regulatory capital plays in their structured credit platform. She highlighted its importance in delivering stable, risk-adjusted income for investors. "The essence of regulatory capital is that it diversifies client portfolios away from corporate risk while complementing private market exposures," she stated.

Since introducing their first standalone longer-lock regulatory capital vintage in 2019, MCQS has invested over $3 billion in regulatory capital transactions, showcasing an unwavering commitment to this sector. The firm’s capacity to continually evolve in partnership with major European banks has played a critical role in shaping the market dynamics over the past decade.

The growth trajectory of the regulatory capital market is astounding, with MCQS reporting an approximate annual increase of 25%. As the firm navigates a pipeline filled with lucrative deals, they express confidence in their approach of keenly selecting transactions. The significance of rigorous due diligence cannot be overstated amidst the current market conditions, and MCQS’s rich database of over a decade’s worth of transaction data provides a competitive edge.

In a market where deal selection is paramount, the firm employs a strategic combination of bilateral and club deals, capitalizing on their strong relationships with various banking institutions to optimize execution. MCQS’s expertise in structured credit allows them to dissect deal structures meticulously and carry out stringent stress tests. This methodology aims to secure transactions with the best risk-adjusted return potential for their investors. Their efforts have historically yielded notable outcomes, including low default rates, minimal volatility, and a starkly low correlation to broader credit markets, with a strict decline rate of around 75%.

Jason Walker, Co-Chief Investment Officer of MCQS, expressed excitement about the current momentum, emphasizing the opportunity to tap into high-quality loans on bank balance sheets. "The robust market evolution signals tremendous potential for investors seeking high levels of regular income," he stated.

Recognizing the ongoing strength of opportunities available, MCQS has fast-tracked plans to unveil a fourth vintage of their regulatory capital strategy, integrating it with asset-backed finance, which represents a significant portion of their structured credit portfolio.

Manulife Wealth and Asset Management stand as crucial players in this landscape, providing investment strategies and financial services for millions globally. Their commitment lies in offering better investment outcomes while intending to enhance the investor experience.

For additional insights and updates from Manulife Investment Management, visit manulifeim.com. This latest achievement not only marks a milestone for MCQS but demonstrates their foresight and capability to navigate and thrive in complex investment environments.

As regulatory capital continues to gain traction, stakeholders and investors alike will be closely watching how MCQS capitalizes on its well-established market presence and upward growth trends to maximize returns while managing risks effectively.