Manulife Investment Management to form strategic partnership with ARCH Capital through a significant minority equity acquisition


February 14, 2022

HONG KONG – Manulife Investment Management and ARCH Capital today announced they have reached an agreement to form a strategic partnership. Pending regulatory approval, Manulife Investment Management will acquire a significant minority equity position[1] in ARCH Capital, a real estate private equity investment manager specializing in opportunistic, value-add and core/core-plus strategies across major markets in Asia Pacific including Greater China, Southeast Asia and Australia.  

 

Established in 2006, ARCH Capital has US$2.3 billion[2] of assets under management (AUM) across comingled funds, separate accounts and joint ventures with a diversified portfolio across office, retail, residential, and mixed-use. ARCH Capital has a long-standing track record of creating value for investors through active and direct asset management through an integrated in-house team with local presence across key Asia markets. 

 

Manulife’s real estate team develops and manages commercial real estate globally on behalf of its clients, including Manulife’s general account, totalling 63 million square feet[3] of office, industrial, multi-family, and retail space strategically located across different regions out of which US$2.9 billion[4] core/core-plus direct investment portfolio are in key gateway cities in Asia. 

 

The partnership aims to offer investors a comprehensive product suite across various strategies with broadened scale and presence. On a combined basis, the partnership’s total AUM exceeds US$5 billion across 12 markets in Asia with on-the-ground presence, supported by over 60 investment and management professionals.  

 

Manulife is committed to collaborating closely with ARCH Capital on opportunities to become the institutional anchor for its future investment strategies. There will be no change to the current management of ARCH Capital’s existing businesses. As the partnership progresses, Manulife Investment Management and ARCH Capital are set for closer collaboration over time. 

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[1] This acquisition will also be subject to satisfaction of other customary conditions.
[2] Source: ARCH Capital, 31 December 2021
[3] Source: Manulife, 31 December 2021
[4] Source: Manulife, 31 December 2021

 

Christoph Schumacher Manulife Im 400x289

 

Christoph Schumacher, Global Head of Real Assets, Private Markets, Manulife Investment Management, said, “This transaction is a tremendous complement to our ambitious Asia private markets and real estate growth strategy, and a strong amplification of our core strengths. ARCH Capital boasts a highly credible and experienced team with a long, established track record, and differentiated local presence in key Asia markets. This partnership further demonstrates our commitment to the fast-growing Asia region and will allow us to add even more value to our investors with broadened deal access, deepened investment management capabilities, and enhanced operational support.”

 

Richard Yue 2022 02.544

 

Richard Yue, Founder and Chief Executive Officer, ARCH Capital, said, “We are excited to be teaming up with Manulife Investment Management through this strategic partnership. We remain firmly focused and committed to creating value for our investors. This partnership would give us enhanced strengths and geographical reach through a powerful combination of Manulife Investment Management’s global institutional foundation with ARCH Capital’s local presence.” 

 

Myron Zhu 2022 02.24

 

Myron Zhu, Head of Private Markets, Asia, Manulife Investment Management, said, “This partnership forms another key pillar of Manulife Investment Management’s private markets buildout in Asia. Our strategy is to create a win-win formula with our partners who share a strong alignment of interests for all stakeholders by focusing on growth, performance, and superior client service, and ARCH Capital checks all the boxes. This is set to become a solid building block for our private markets business in Asia as we look to leverage the combined local investment expertise with global institutionalized standards to provide diversified services to our investors.” 

 

About Manulife Investment Management 

Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 18 geographies. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We’re committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

 

About ARCH Capital Management

ARCH Capital has consistently capitalized on industry cycles, opportunities and challenges to deliver superior risk adjusted returns for its clients. Our business spans core/core plus, value-add and opportunistic strategies for funds, separate accounts and joint ventures across Greater China, Southeast Asia and Australia. The depth of our seasoned professionals, market knowledge, industry networks and track record position us well as your preferred partner in Asia.  

 

Our management-owned/operated platform emphasizes strong alignment with stakeholders through rigorous corporate governance, responsible investment practices (ESG) and a strong culture of discipline and operational transparency.    

 

ARCH Capital is licensed with the Securities and Futures Commission of Hong Kong.

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Strategic Partnerships