CVC to acquire Marathon is the latest power move in private equity’s race to dominate global credit markets, as the buyout firm said Monday it plans to purchase hedge fund Marathon Asset Management LP in a cash-and-equity transaction valued at up to $1.2 billion.
The deal, once completed, will fuse Marathon’s New York-based operations with CVC’s credit arm, creating a newly branded platform, CVC-Marathon, aimed squarely at expanding lending capabilities in the United States while reinforcing CVC’s stronghold in Europe.
A merger built on credit scale
CVC said Marathon brings $24 billion in assets under management, adding significant heft to its credit business. The acquisition is designed to strengthen CVC’s ability to offer credit solutions to institutional investors, private wealth clients and insurance firms across the U.S.
Under the agreement, the transaction includes $400 million in cash and $800 million in equity, CVC said.
Performance incentives baked in
Marathon’s partners and employees could receive an additional $200 million in cash and $200 million in equity if the firm meets certain financial performance targets by 2029. The companies did not disclose what benchmarks must be hit to unlock those payouts.
