Key Takeaways
- • Manulife | Comvest Credit Partners identified direct lending, asset-based finance, and capital solutions as its top ideas for 2027 in its 2027 Private Markets Outlook.
- • The firm argues that refinancing activity and more varied borrower needs are broadening private credit opportunities as maturing post-boom debt moves into a higher-cost, more selective financing market.
- • Manulife | Comvest Capital Partners raised $5.4bn (£4.1bn) at the final close of its North American direct lending strategy in August, the largest fundraise to date for the platform.
- • Robert O'Sullivan, global head of private credit at Manulife | Comvest Credit Partners, says the market is in the early stages of a multi-year shift toward more complex middle-market financing needs.
Summary
Manulife | Comvest Credit Partners says opportunities in private credit are expanding as refinancing activity accelerates and borrower needs become more varied. In its 2027 Private Markets Outlook, the private credit platform noted that much of the debt raised during the last boom is now maturing into a higher-cost and more selective financing market.
The firm named direct lending, asset-based finance, and capital solutions as its top ideas for the coming year. It suggested that the current environment favours investors with the ability to underwrite complexity and structure transactions with strong downside protection. In direct lending, refinancing, shareholder liquidity events, acquisitions, and capital structure optimisation are creating a broader set of financing opportunities, although sponsor-backed buyout financing remains a core component of the market. The firm believes lenders with flexibility to underwrite complexity and structure customised solutions are well positioned as borrower needs diversify.
The firm also highlighted the growth of asset-based finance across income-producing assets as banks retreat from specialty lending. It described attractive opportunities in specialised and less-trafficked asset classes, where underwriting expertise, proprietary sourcing, and disciplined structuring can create compelling risk-adjusted returns. On capital solutions, the outlook said sponsors and management teams are increasingly using structured capital to address liquidity needs, bridge valuation gaps, support portfolio company growth, and manage realisation timelines.
Across private credit, the firm said downside protection depends on careful attention to leverage, collateral coverage, covenant protections, lender rights, and capital-structure positioning. Robert O'Sullivan, global head of private credit at Manulife | Comvest Credit Partners, said: "We believe we're in the early stages of a multi-year shift toward more complex financing needs across the middle market." He added that the opportunity in private credit is broadening and increasingly defined by an investor's ability to underwrite complexity and structure a wide range of tailored solutions.
The firm's commentary follows its August final close of $5.4bn (£4.1bn) for its North American direct lending strategy.
The firm named direct lending, asset-based finance, and capital solutions as its top ideas for the coming year. It suggested that the current environment favours investors with the ability to underwrite complexity and structure transactions with strong downside protection. In direct lending, refinancing, shareholder liquidity events, acquisitions, and capital structure optimisation are creating a broader set of financing opportunities, although sponsor-backed buyout financing remains a core component of the market. The firm believes lenders with flexibility to underwrite complexity and structure customised solutions are well positioned as borrower needs diversify.
The firm also highlighted the growth of asset-based finance across income-producing assets as banks retreat from specialty lending. It described attractive opportunities in specialised and less-trafficked asset classes, where underwriting expertise, proprietary sourcing, and disciplined structuring can create compelling risk-adjusted returns. On capital solutions, the outlook said sponsors and management teams are increasingly using structured capital to address liquidity needs, bridge valuation gaps, support portfolio company growth, and manage realisation timelines.
Across private credit, the firm said downside protection depends on careful attention to leverage, collateral coverage, covenant protections, lender rights, and capital-structure positioning. Robert O'Sullivan, global head of private credit at Manulife | Comvest Credit Partners, said: "We believe we're in the early stages of a multi-year shift toward more complex financing needs across the middle market." He added that the opportunity in private credit is broadening and increasingly defined by an investor's ability to underwrite complexity and structure a wide range of tailored solutions.
The firm's commentary follows its August final close of $5.4bn (£4.1bn) for its North American direct lending strategy.
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