What's Happening?
CVC, a leading private markets investment firm, has announced its acquisition of Marathon Asset Management, a prominent US credit manager, in a transaction valued at up to $1.2 billion. The deal includes $400 million in cash and up to $800 million in CVC equity. Marathon will be rebranded as CVC-Marathon, and its co-founders, Bruce Richards and Lou Hanover, will continue to lead the credit strategies. The acquisition is expected to be earnings per share (EPS) neutral in 2027 and accretive from 2028 onwards. The transaction is subject to regulatory approvals and is anticipated to close in the third quarter of 2026.
Why It's Important?
This acquisition underscores CVC's strategy to enhance its global credit platform by integrating Marathon's robust origination capabilities
and disciplined investment approach. The deal aligns with CVC's focus on delivering exceptional investment returns and expanding its reach across multiple asset classes and geographies. By acquiring Marathon, CVC aims to strengthen its position in the competitive credit market and offer a more comprehensive suite of investment solutions to its clients. The transaction also highlights the growing trend of consolidation in the asset management industry as firms seek to scale operations and enhance their competitive advantage.
What's Next?
Following the acquisition, CVC plans to integrate Marathon's operations and leverage its expertise to expand its credit offerings. The firm will focus on achieving synergies and enhancing its investment capabilities to deliver superior returns to its clients. The transaction's completion is contingent upon regulatory approvals, and CVC will work closely with advisors to ensure a smooth integration process. As the credit market continues to evolve, CVC's expanded platform is well-positioned to capitalize on emerging opportunities and meet the diverse needs of institutional investors.
