CVC acquires Marathon

CVC has acquired credit management firm Marathon Asset Management for $1.2 billion, as part of its strategy to strengthen its foothold in the U.S. market. CVC, a global private markets investment firm with €201 billion under management, aims to benefit from Marathon’s significant portfolio of $24 billion, which encompasses asset-based lending, real estate, opportunistic, and public credit sectors across the United States.

Post-transaction, CVC's credit division will see its fee-paying assets under management swell to approximately €61 billion. The acquisition consists of a $400 million cash payment and up to $800 million in CVC equity. Both Bruce Richards and Lou Hanover will maintain their leadership roles at Marathon, which will be rebranded as CVC-Marathon. Richards will also assume a position on CVC's partner board, signifying a deeper integration of management personnel and strategic direction.

Rob Lucas, CVC's chief executive, highlighted the acquisition as a pivotal move to enhance CVC's credit capabilities in the U.S., complementing its established European platform. He underscored the alignment between CVC's platform and Marathon's robust track record in delivering consistent results across various market cycles. Richards echoed the sentiment, emphasizing the synergy between CVC’s global reach and Marathon’s credit expertise.

The acquisition comes at a time when the alternative credit market continues to grow, driven by investor demand for diverse asset classes and uncorrelated returns. The deal positions CVC to better capture opportunities in these expanding markets. By integrating Marathon's U.S.-based strengths with its own, CVC aims to offer a broadened suite of credit solutions to a wider client base, including institutional investors, private wealth, and insurance channels.

The transaction is anticipated to be completed by the third quarter of 2026, pending regulatory approval. This aligns with CVC's recent initiative to manage insurance-focused private credit mandates for American International Group (AIG), further extending its strategic partnerships and industry influence.