What's Happening?
CVC, a prominent private markets investment firm, has announced its acquisition of Marathon Asset Management, a leading global credit manager, in a transaction valued at up to $1.2 billion. The deal includes a base consideration of $400 million in cash and up to $800 million in CVC equity. Additionally, there is an earn-out consideration linked to Marathon's financial performance from FY2027 to FY2029, potentially adding $200 million in cash and $200 million in equity. Marathon will be rebranded as CVC-Marathon, with its co-founders continuing to lead the credit strategies. The acquisition is expected to close in Q3 2026, pending regulatory approvals.
Why It's Important?
This acquisition signifies a strategic expansion for CVC into the credit management sector,
enhancing its global reach and investment capabilities. By integrating Marathon's robust origination platform and investment expertise, CVC aims to strengthen its position in delivering exceptional investment returns. The deal is structured to align long-term interests, with earn-out considerations incentivizing Marathon's partners and employees. This move could potentially reshape the competitive landscape in the credit management industry, offering CVC a more diversified portfolio and increased market influence.
What's Next?
The transaction is subject to regulatory approvals and is expected to close by the third quarter of 2026. Post-acquisition, CVC plans to integrate Marathon's operations, focusing on leveraging synergies to enhance financial performance. The rebranding to CVC-Marathon will likely involve strategic initiatives to expand their credit platform globally. Stakeholders will be closely monitoring the integration process and the realization of projected financial benefits, particularly the expected EPS accretion from 2028 onwards.
