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Manulife Investment Management is buying London, U.K.-based CQS, an alternative credit manager with US$13.5 billion in assets under management.

Manulife said it would retain CQS’s “rigorous investment philosophy and process” while expanding the distribution for those investment strategies across client segments and regions.

The financial terms weren’t disclosed. The deal is expected to close early next year.

“We are very excited for the opportunity as CQS’s capabilities are a complement to our existing fixed income and multi-asset solutions business and a powerful addition to our global credit offering,” said Paul Lorentz, Manulife Investment Management’s president and CEO, in a statement.

CQS chief executive Soraya Chabarek called Manulife “the optimal long-term partner.” Chabarek will continue to lead CQS with senior partners Craig Scordellis and Jason Walker.

“We share a client-focused culture, and 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,” Chabarek said in a statement.

CQS was founded in 1999 by Michael Hintze, now a member of the U.K. House of Lords, as a hedge fund, and it has evolved into a multi-sector credit platform.

Hintze’s Directional Opportunities Fund and certain related mandates are not included in the transaction. He will be forming his own firm where he’ll continue to manage that fund.

Manulife Investment Management recently cut 250 jobs globally.