Key Takeaways
- • Webster Bank and Marathon Asset Management announced a private credit joint venture that will provide direct lending to sponsor-backed middle market companies, per a Business Wire release dated July 1, 2024.
- • Webster Financial Corporation (NYSE: WBS), holding company for the $76 billion-asset Webster Bank, is combining its Sponsor & Specialty Finance Group with Marathon's credit platform, which manages $23 billion in assets.
- • The joint venture will originate directly sourced senior secured loans and involves more than 100 employees from both firms, including investment and business development professionals.
- • Webster expects the venture to diversify its revenue and generate asset management income, while Marathon sees it as a direct lending partnership that will benefit its investors.
Summary
Webster Financial Corporation, the holding company for Webster Bank, N.A., and Marathon Asset Management, L.P. announced they are forming a private credit joint venture to deliver direct lending solutions to sponsor-backed middle market companies, according to a Business Wire release. Webster Bank reports $76 billion in assets and describes itself as a top-performing commercial bank, while Marathon is described as a leading global credit manager with $23 billion in assets under management.
The venture combines each firm's credit expertise, private equity sponsor relationships and middle market standing with Webster's banking product suite and Marathon's more than 26 years of asset management experience. It will originate directly sourced senior secured loans across industries where both firms have established track records. More than 100 employees from the two companies will work together, including investment and business development professionals.
Webster's Sponsor & Specialty Finance Group has served the portfolio companies of private equity sponsors for two decades. The group's team of over 50 bankers has built relationships with more than 125 sponsors nationwide.
John Ciulla, Chairman and CEO of Webster Financial Corporation, said the venture allows Webster to better serve clients while diversifying revenue and drawing more value from its sponsor franchise. He said the venture will allow Webster to offer larger facilities and additional financing solutions, and will generate asset management income. Andre Paquette, Group Head of Sponsor & Specialty Finance at Webster Bank, said the partnership complements Marathon's operating history and credit market expertise.
Bruce Richards, CEO and Chairman of Marathon, said the partnership combines two firms with deep sponsor relationships and a strong middle market reputation, and that it will benefit Marathon's investors for years to come. Marathon's direct lending business provides sponsors with financing for acquisitions, refinancings and recapitalizations, as well as asset-based lending and capital solutions for borrowers. Curtis Lueker, Managing Director and Head of Direct Lending at Marathon, described the deal as a natural extension of several years of collaboration between the firms.
The venture combines each firm's credit expertise, private equity sponsor relationships and middle market standing with Webster's banking product suite and Marathon's more than 26 years of asset management experience. It will originate directly sourced senior secured loans across industries where both firms have established track records. More than 100 employees from the two companies will work together, including investment and business development professionals.
Webster's Sponsor & Specialty Finance Group has served the portfolio companies of private equity sponsors for two decades. The group's team of over 50 bankers has built relationships with more than 125 sponsors nationwide.
John Ciulla, Chairman and CEO of Webster Financial Corporation, said the venture allows Webster to better serve clients while diversifying revenue and drawing more value from its sponsor franchise. He said the venture will allow Webster to offer larger facilities and additional financing solutions, and will generate asset management income. Andre Paquette, Group Head of Sponsor & Specialty Finance at Webster Bank, said the partnership complements Marathon's operating history and credit market expertise.
Bruce Richards, CEO and Chairman of Marathon, said the partnership combines two firms with deep sponsor relationships and a strong middle market reputation, and that it will benefit Marathon's investors for years to come. Marathon's direct lending business provides sponsors with financing for acquisitions, refinancings and recapitalizations, as well as asset-based lending and capital solutions for borrowers. Curtis Lueker, Managing Director and Head of Direct Lending at Marathon, described the deal as a natural extension of several years of collaboration between the firms.
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