Monday, May 27, 2024

Hintze sells CQS to Manulife

Soraya Chabarek, CEO at CQS, and founder Michael Hintze

CQS is being acquired by Toronto-based Manulife Investment Management, with founder Michael Hintze set to leave after 24 years to run his own hedge fund.

The $13.5bn alternative credit specialist will become a new unit of the $618bn Canadian firm, the companies said in a statement.

Hintze’s flagship Directional Opportunities hedge fund strategy, which runs about $1.5bn, will become part of a new unnamed firm. Manulife will acquire the CQS brand in the deal, planned to complete in early 2024.

“We are pleased to enter into this agreement which we see as mutually beneficial to both firms as well for those who have been investing with CQS for decades,” said Paul Lorentz, president and CEO at Manulife Investment Management.

Soraya Chabarek, CEO at CQS, will continue to lead the unit. She joined the firm as global head of sales and development in 2013 after spells at Moore Capital Management and GLG Partners.

“The support of [Manulife’s] strong platform and global distribution combined with the autonomy of our investment teams will ensure we continue to strive to deliver attractive long-term returns to our client base,” she said.

“I would like to take this opportunity to thank Lord Hintze for the personal support and wise counsel he has given me as CEO. Over the last decade we have transformed CQS into a global alternative credit platform.”

CQS offers alternative credit strategies including corporate credit (loans and bonds), asset-backed securities (ABS), collateralised loan obligations (CLOs), regulatory capital, convertible bonds and structured credit.

Hintze’s Directional Opportunities Fund and certain related mandates are not included in the transaction, according to the statement.

He said the deal “provides a long-term platform that will enable CQS to thrive as a leading alternative credit manager for years to come under Soraya’s exceptionally able leadership. I will now focus full-time on running the Directional Opportunities Fund, an opportunity that I am excited about.”