Interview with Paul Fishbin, Managing Director - Manulife

Paul Fishbin brings an institutional perspective on private equity, drawn from more than 20 years of experience at Manulife, a major insurance company with more than $25 billion invested in private equity. His career, which began in investment banking, led him to develop a comprehensive, multi-strategy program combining investments in funds (LPs) with direct investments such as co-investments, private debt, and secondary transactions. At Manulife, private equity accounts for approximately 10% of assets under management—a level consistent with the practices of large institutional investors. This allocation is not fixed but is adjusted according to market conditions, allowing for flexible and opportunistic management. The appeal of private equity for an insurance company rests on several key factors. First, historically superior long-term performance. Second, lower accounting volatility compared to public markets, which is crucial for entities subject to reporting constraints. Finally, the illiquidity premium is an advantage, as investors are compensated for tying up their capital over the long term. Manulife’s program also illustrates the importance of a structured and diversified approach. Leveraging relationships with fund managers provides access to direct investment opportunities, enhancing overall performance. This multi-asset, global strategy enables investors to capture various sources of return while managing risk. Underlying this approach is a fundamental principle of institutional private equity: allocation discipline, diversification, and long-term portfolio construction are essential for maximizing performance and limiting risk.