CVC, a private markets investment firm, will acquire credit manager Marathon Asset Management in a deal valued at up to $1.2 billion, in a move that continues to bolster the private markets sector. 

The buyout from CVC is expected to comprise $400 million in cash and up to $800 million in CVC equity and is expected to close in the third quarter of this year. 

The acquisition is set to boost CVC’s assets under management in credit to $72 billion by adding Marathon’s $24 billion in credit assets, CVC said. 

The move by CVC comes after its partnership with American International Group, which scales SMAs across CVC’s credit strategies. The partnership also launched a private equity secondaries evergreen platform, with AIG serving as cornerstone investor.  

The anticipated deal is expected to boost CVC’s earnings per share from 2028 and will result in the two entities being rebranded as CVC-Marathon if granted regulatory approval. 

As part of the deal, Marathon’s CEO, chairman, and co-founder Bruce Richards, and CIO and co-founder Lou Hanover will continue to co-head the Marathon credit strategies. Richards will join the partner board of CVC, and CVC’s head of credit and partner Andrew Davies will be responsible for managing the combined business. 

Under the agreement, CVC will initiate its private equity secondaries evergreen platform with AIG, which is estimated to contribute up to $1.5 billion from its existing private equity portfolio, the firm said. 

CVC is set to gain Marathon’s capabilities across private and public credit and will fold CVC’s existing offerings in private wealth and insurance. 

Over the past couple of years, the private credit market has grown rapidly as investments continue to expand across various sectors, including energy, transportation, digital infrastructure, and defense.

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