Key Takeaways
- • CVC Capital Partners has agreed to acquire 100% of Marathon Asset Management, a leading US credit manager, in a cash and equity transaction with base consideration valued at up to $1.2 billion.
- • The closing consideration comprises $400 million in cash and up to $800 million in CVC equity, with an additional earn-out of up to $200 million in cash and $200 million in CVC equity tied to Marathon's performance from FY2027 to FY2029.
- • Following completion, CVC Credit's fee-paying AUM is expected to rise to approximately €61 billion (as at 30 September 2025), supporting CVC's target of €200 billion FPAUM by 2028.
- • The acquisition is expected to be EPS neutral in 2027 and EPS accretive from 2028, before any revenue or cost synergies.
- • Marathon will be rebranded CVC-Marathon, with co-founders Bruce Richards and Lou Hanover continuing to co-head the credit strategies; Richards joins CVC's Partner Board.
Summary
CVC Capital Partners has agreed to acquire 100% of Marathon Asset Management, a New York-based credit manager, in a transaction with base consideration valued at up to $1.2 billion, according to CVC's announcement. The deal comprises $400 million in cash at closing and up to $800 million in CVC equity, issued via a wholly-owned subsidiary and exchangeable one-for-one into CVC ordinary shares. An earn-out of up to $200 million in cash and $200 million in equity is linked to Marathon's financial performance from FY2027 to FY2029 and is payable only to Marathon's partners and employees. Marathon's minority partner will receive $280 million of the cash portion for its 100% interest.
The transaction expands CVC's access to the US market through Marathon's positions in asset-based, real estate, opportunistic and public credit. CVC describes these capabilities as complementary to its position as the number one European CLO manager and a top-three manager in European direct lending. Following completion, CVC Credit's fee-paying AUM is expected to increase to approximately €61 billion, as CVC pursues double-digit FPAUM growth toward €200 billion by 2028. CVC CEO Rob Lucas said the deal accelerates growth and follows a recently announced strategic partnership with AIG.
Marathon co-founder Bruce Richards said the firm's investment culture aligns with CVC's approach. Richards and Lou Hanover will continue to co-head the Marathon strategies, which will be rebranded CVC-Marathon. Richards will join CVC's Partner Board and, alongside Andrew Davies, will manage the combined CVC Credit business. CVC expects the deal to be EPS neutral in 2027 and EPS accretive from 2028, before synergies. The cash portion will be funded from balance-sheet cash and undrawn credit facilities. The transaction is subject to regulatory and other consents and is expected to close in Q3 2026. Advisers included JP Morgan, Freshfields, Fried Frank and Ernst & Young for CVC, and Sidley Austin for Marathon.
The transaction expands CVC's access to the US market through Marathon's positions in asset-based, real estate, opportunistic and public credit. CVC describes these capabilities as complementary to its position as the number one European CLO manager and a top-three manager in European direct lending. Following completion, CVC Credit's fee-paying AUM is expected to increase to approximately €61 billion, as CVC pursues double-digit FPAUM growth toward €200 billion by 2028. CVC CEO Rob Lucas said the deal accelerates growth and follows a recently announced strategic partnership with AIG.
Marathon co-founder Bruce Richards said the firm's investment culture aligns with CVC's approach. Richards and Lou Hanover will continue to co-head the Marathon strategies, which will be rebranded CVC-Marathon. Richards will join CVC's Partner Board and, alongside Andrew Davies, will manage the combined CVC Credit business. CVC expects the deal to be EPS neutral in 2027 and EPS accretive from 2028, before synergies. The cash portion will be funded from balance-sheet cash and undrawn credit facilities. The transaction is subject to regulatory and other consents and is expected to close in Q3 2026. Advisers included JP Morgan, Freshfields, Fried Frank and Ernst & Young for CVC, and Sidley Austin for Marathon.
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