CVC Capital Partners Acquires Marathon Asset Management for $1.2 Billion

CVC Capital Partners Plc has announced its agreement to acquire Marathon Asset Management in a transaction valued at up to $1.2 billion. This strategic move aims to enhance CVC's presence in the U.S. credit markets, leveraging Marathon's expertise in asset-based, real estate, opportunistic, and public credit. The deal comprises $400 million in cash and up to $800 million in CVC equity, with additional earn-out considerations tied to Marathon's financial performance from fiscal years 2027 to 2029, potentially adding another $200 million in cash and equity.

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Peter Rutland, CVC's president, emphasized the importance of the U.S. credit market, stating that the acquisition aligns with CVC's goal of achieving high-quality returns. The integration of Marathon is expected to increase CVC's fee-paying assets under management to approximately €61 billion ($72 billion), reinforcing its position as a leading player in both European and U.S. credit markets. CVC's Chief Executive Officer, Rob Lucas, noted that this acquisition supports their ambition to grow fee-paying assets to €200 billion by 2028.

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Marathon, founded in 1998 by Bruce Richards and Lou Hanover, manages over $24 billion in assets. Following the acquisition, Marathon will be rebranded as CVC-Marathon, with Richards and Hanover continuing to lead the credit strategies. Richards will also join CVC's Partner Board, further integrating the leadership of both firms.

CVC to Buy US Credit Manager Marathon in $1.2 Billion Deal

The acquisition is projected to be earnings-per-share neutral in 2027 and accretive from 2028 onwards, prior to any revenue or cost synergies. CVC plans to fund the cash portion of the transaction through its existing cash reserves and undrawn credit facilities. The deal is subject to regulatory approvals and is expected to close in the third quarter of 2026.

CVC acquires leading US credit manager Marathon Asset Management (“Marathon”)

Despite the strategic advantages, some analysts have raised concerns regarding the risks associated with private markets, particularly in light of Marathon's involvement in distressed situations, such as its recent negotiations with AMC Entertainment Holdings Inc. Critics argue that the integration of such a firm could expose CVC to hidden risks.

CVC to Buy US Credit Manager Marathon in $1.2 Billion Deal

Rob Lucas remarked, “This is a highly strategic transaction that accelerates our growth and reinforces the strength of our platform.” Bruce Richards echoed this sentiment, stating, “CVC’s focus on delivering exceptional investment returns, integrity, collaboration, and client partnership closely aligns with Marathon’s culture.”

CVC To Buy Marathon Asset Management In Deal Valued Up To $1.2 Billion

As the acquisition progresses, CVC will continue to explore partnerships and strategic acquisitions to enhance its service offerings, particularly in the insurance sector, as evidenced by its recent partnership with American International Group Inc. The successful integration of Marathon is anticipated to play a crucial role in CVC's growth strategy moving forward.

CVC acquires Marathon in US expansion

• “The US credit market is a key priority for us, and we have been patiently working out and waiting to find the right opportunity to find a firm that meets the exceptionally high quality of returns that we’re looking for,” — Peter Rutland, President of CVC

CVC to Buy US Credit Manager Marathon in $1.2 Billion Deal

• “a very unique opportunity for us to think about how we propel our firm.” — Bruce Richards, Co-Founder of Marathon

CVC to Buy US Credit Manager Marathon in $1.2 Billion Deal

• “Expanding credit capability in the US to complement our market-leading European platform has been a clear priority for CVC, and we are delighted to partner with Bruce, Lou, and the team,” — Rob Lucas, CEO of CVC

CVC strikes $1.2bn deal for US credit manager Marathon – Private Equity Insights