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.

Expanding reach across the Atlantic

CVC, which is based in Jersey in the Channel Islands, said the acquisition will significantly expand its European lending capabilities while boosting assets under management in its credit unit by about €61 billion ($72 billion).

Rob Lucas, CVC’s chief executive, said the strategy has been clear.

“Expanding credit capability in the U.S. to complement our market-leading European platform has been a clear priority for CVC,” Lucas said.

Leadership continuity at the top

Marathon co-founders Bruce Richards and Lou Hanover will continue to lead the combined firm’s credit strategies. Richards will jointly manage the merged credit business alongside Andrew Davies, head of CVC Credit.

Richards described the tie-up as a force multiplier.

“CVC's global reach and its investment insights across multiple asset classes and geographies will deliver a powerful partnership,” he said.

Advisors and closing timeline

Freshfields LLP and Fried Frank Harris Shriver & Jacobson LLP are advising CVC on the transaction. Sidley Austin LLP is serving as legal counsel to Marathon.

The deal remains subject to regulatory approvals, though the companies did not specify which authorities must sign off. The parties said they expect the transaction to close by September.

As CVC to acquire Marathon moves toward completion, the deal underscores a broader trend: private equity firms are stitching together global credit platforms, betting that size, scale and cross-border reach will define the next era of alternative lending.