Private capital group CVC has reached an agreement to acquire credit management firm Marathon Asset Management for up to $1.6 billion. This marks another significant transaction in the ongoing wave of consolidation within the private markets industry.
The acquisition targets the New York-based company and is expected to be finalized in the third quarter, adding €17 billion in fee-earning assets under management to CVC upon completion.
CVC stated in an announcement that the purchase will be paid with $1.2 billion in cash and stock, plus an additional $400 million in contingent consideration linked to Marathon's future performance.
CVC currently manages €200 billion in assets, with operations spanning private equity, credit, and infrastructure. This deal follows the previous week's announcement of a $3.5 billion strategic partnership with American insurer American International Group Inc.
The acquisition of Marathon Asset Management represents the latest merger between private capital firms. The industry is currently experiencing a slowdown in fundraising, prompting many institutional investors to shift their focus towards a smaller number of larger, more diversified partners.
Last week, CVC's main European competitor, Stockholm-listed EQT Corp, announced its intention to acquire UK-based Coller Capital for up to $3.7 billion. Coller Capital specializes in acquiring stakes in mature buyout and credit funds and manages $50 billion in assets.
Founded in 1998 by Bruce Richards and Lou Hanover, Marathon Asset Management has total assets under management of $24 billion. The group specializes in asset-backed lending—a core focus in today's private credit market—opportunistic credit, and public market credit strategies.
CVC President and Managing Partner Peter Rutland indicated that the U.S. private credit business is a key area for the firm's new growth initiatives. He described the acquisition as "a highly attractive strategic move" and added, "We have been patiently waiting for the right acquisition target."
Richards stated, "The core logic behind joining forces with CVC is that one plus one equals three." He highlighted that his team was drawn to CVC due to its "extensive partnership network," "geographic reach," and "performance-driven culture."
CVC expects the Marathon Asset Management transaction to be accretive to earnings per share starting in 2028. This acquisition supplements the guidance issued by the company in October, when CVC set a target to increase its fee-earning assets under management to €200 billion by 2028.
Subject to regulatory approval, Marathon will be rebranded as CVC-Marathon.
CVC went public in Amsterdam in 2024 and has recently accelerated its succession planning. According to previous reports, Rob Lucas, who became CEO at the time of the listing, is considering stepping down within the next two years.
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