Marathon Asset Management has closed its distressed credit fund at about $2.5 billion. The fund will provide capital that will “allow companies to grow or reposition their businesses, including stressed and distressed companies in transition.”
NEW YORK, Jan. 7, 2021 /PRNewswire/ — Marathon Asset Management (“Marathon”), a leading global credit investment manager, today announced the final close for its Marathon Distressed Credit Fund, which was oversubscribed with approximately $2.5 billion in commitments. The fund will invest in a wide range of situations by providing capital solutions that allow companies to grow or reposition their businesses, including stressed and distressed companies in transition. The opportunities it will pursue include restructurings, debtor in possession financings, and exit financings where Marathon can bring to bear its differentiated expertise, experience and resources.
“While the broader market has recovered, the K-shaped recovery has resulted in a disparate impact that requires tailored capital solutions to help companies across industries recover from the 2020 cyclical decline,” said Bruce Richards, Chairman & Chief Executive Officer of Marathon. “Companies that are well positioned for future growth may need a thoughtful and sophisticated capital partner to navigate the downturn, even in the event it may require a consensual restructuring.”
Louis Hanover, Chief Investment Officer of Marathon, said: “Following a prolonged economic expansion marked by mispriced risk and heavily levered capital structures with weak documentation we are presented with an optimal investment environment to prudently and opportunistically deploy capital.”
Jason Friedman, Partner and Head of Corporate Strategies at Marathon added: “As we progress into the latter stages of the turn in the credit cycle, there exists a varied set of opportunities to deliver our expertise and capital to strong companies backed by secular growth drivers that are confronting cyclical headwinds. Our constructive and flexible approach to strategically working with distressed companies during recapitalizations, including restructurings, will serve our fund investors well.”
Marathon’s team includes 35 investment professionals with experience across credit cycles who are supported by the firm’s in-house bankruptcy legal team, former restructuring advisors and private equity restructuring professionals. The firm’s broad network of relationships with the leading banking institutions, law firms and restructuring advisory firms, positions Marathon to successfully source, trade and manage distressed investments.
Marathon Asset Management, L.P. is a New York-based global investment advisor with approximately $20 billion of capital under management. The firm was found in 1998 by Louis Hanover and Bruce Richards and employs more than 160 professionals. Marathon’s corporate headquarters are in New York City with international offices in London and Tokyo. Marathon is a Registered Investment Adviser with the Securities and Exchange Commission. For more information, please visit the company’s web site at www.marathonfund.com.