CVC Capital Partners to buy Marathon, creating global credit hubs

CVC Capital Partners has struck a deal to purchase 100% of Marathon Asset Management, a prominent US credit manager, in a transaction with a headline value of $1.2 billion. The combination fast-tracks CVC’s ambition to deepen its US credit footprint and to assemble a multi-asset credit platform covering both private and public strategies.

The purchase price at closing comprises $400 million in cash and up to $800 million in equity issued by a CVC subsidiary, with additional performance-linked earn-outs of up to $200 million in cash and $200 million in equity tied to Marathon’s results from FY2027–FY2029. Up to 45 million SubCo Units will be issued (including 11 million units subject to 2027 performance adjustments) and will be exchangeable into CVC ordinary shares under customary lock-up provisions.

On a pro forma basis the combined credit business will lift CVC Credit’s Fee-Paying Assets under Management to roughly €61 billion (as of 30 September 2025), a substantial step toward CVC’s target of scaling to €200 billion of FPAUM by 2028. Management expects the acquisition to be roughly EPS neutral in 2027 and EPS accretive from 2028, before any synergy capture.

Leadership continuity is central to the deal. Bruce Richards and Lou Hanover will remain co-heads of the credit strategies, and Marathon will be rebranded as CVC-Marathon. Mr. Richards will join CVC’s Partner Board and, together with Andrew Davies, will oversee the consolidated credit platform. CVC’s CEO Rob Lucas described the move as a strategic acceleration of the firm’s credit growth in the US and a strong cultural fit with Marathon’s investment approach.

From a market perspective, the transaction underscores ongoing investor demand for scaled credit franchises that can provide diversified origination and distribution across institutional, private wealth and insurance channels. Marathon brings strengths in Asset-Based, Real Estate, Opportunistic and Public Credit — capabilities that complement CVC’s standing in European liquid credit and direct lending and provide cross-border distribution opportunities, including via CVC’s recent strategic alliance with AIG.

The deal remains subject to regulatory approvals and other customary consents and is expected to close in Q3 2026. Marathon’s existing minority partner will receive $280 million of the cash portion for their remaining interest. CVC will fund the cash element from on-balance-sheet cash and undrawn facilities. Financial and legal advisers were engaged on both sides and integration will focus on preserving Marathon’s origination engine while scaling global product distribution.

For investors and industry watchers, the acquisition is evidence of consolidation in the credit management space: larger platforms are pursuing inorganic routes to broaden product sets, capture scale economics and deepen relationships with insurers and other large balance-sheet investors. Execution risks — from cultural integration to retaining key originators — will determine whether the enlarged CVC‑Marathon achieves the promised cross-border synergies and accelerates the firm’s FPAUM trajectory.