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Affiliated Managers to Sell Comvest's Private Credit Stake for $285M

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Key Takeaways

  • {\"0\":\"AMG will sell its Comvest private credit stake to Manulife for nearly $285M in an all-cash deal.\",\"1\":\"The divestiture follows Comvest\'s AUM growth from $2B to $14B during AMG\'s five-year partnership.\",\"2\":\"AMG will retain the carry interest in certain funds and its stake in Comvest\'s private equity business.\"}

Affiliated Managers Group, Inc. (AMG - Free Report) has agreed to offload its interest in Comvest Partners’ (“Comvest”) private credit business to Manulife Financial Corporation. The all-cash transaction, valued at nearly $285 million, is expected to be closed in the fourth quarter of 2025, subject to customary closing conditions.

Rationale Behind AMG’s Move

Comvest is a leading investment firm with expertise in private equity and direct lending, boasting a 25-year track record of providing capital to middle-market companies across North America.

AMG’s strategic involvement provided Comvest with growth capital and access to its capital formation expertise, helping to accelerate Comvest’s credit platform growth from $2 billion in assets under management at the beginning of their partnership five years ago to $14 billion today.

As part of the transaction, Affiliated Managers will realize a significant gain on its investment. It will retain an interest in the carry from certain existing private credit funds, a share of Comvest’s invested capital in those funds and will continue to hold its stake in Comvest’s private equity business. Additionally, the company will divest its interest in the AMG Comvest Senior Lending Fund joint venture.

Jay C. Horgen, CEO of AMG, stated, “We are pleased that AMG’s collaboration over the course of our partnership has enhanced Comvest’s business growth and its ability to achieve this positive outcome for all stakeholders.”

This move aligns with Affiliated Managers’ goal to reallocate its capital into the lucrative investment opportunities. In sync with this, in May, the company announced the sale of its stake in Peppertree Capital Management Inc. for $240 million. Further, in 2022, the company divested its stakes in Veritable LP and Baring Private Equity Asia.

AMG’s Price Performance & Zacks Rank

Over the past six months, AMG shares have gained 21.6% against the industry’s 0.7% decline.

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Currently, AMG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Divestitures by Other Finance Firms

Last month, HSBC Holdings plc (HSBC - Free Report) agreed to sell its life insurance business in the U.K., HSBC Life (UK) Limited, to Chesnara, a life and pensions consolidator, for a cash consideration of £260 million. The completion of the deal, subject to customary regulatory approvals, is expected in early 2026.

HSBC’s move aligns with its broader repositioning strategy to streamline operations, focusing more on markets with strong growth potential, as highlighted by CEO Georges Elhedery in October 2024.

In June, Huntington Bancshares (HBAN - Free Report) announced the divestiture of the corporate trust and institutional custody business of its subsidiary, The Huntington National Bank (Huntington), to Argent Institutional Trust Company (AITC) to streamline its operations.
 
Huntington Bancshares’ divestiture of its corporate trust and custody business reflects a strategic shift toward refining operations and strengthening its core banking services.


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