Marathon Asset Management, Webster in Private Credit Tie-Up

(Bloomberg) -- Marathon Asset Management and Webster Financial Corp. are forming a private credit joint venture focused on direct lending to private equity-backed middle-market companies, according to a statement.

Most Read from Bloomberg

• Democrats Weigh Mid-July Vote to Formally Tap Biden as Nominee

• Trump Immunity Ruling Means Any Trial Before Election Unlikely

• 24-Hour Stock Trading Is Booming – and Wall Street Is Rattled

• BlackRock Buys Preqin for $3.2 Billion in Private Data Push

• Trump as President or Private Citizen: Why Supreme Court’s Immunity Ruling Is a Test

Monday’s announcement confirmed a Bloomberg News report about the partnership, the latest in a string of tie-ups between direct lenders and traditional banks in the growing $1.7 trillion asset class.

The joint venture will originate senior secured loans across various industries, according to the statement. Marathon has $23 billion of capital under management and has a direct lending business. Connecticut-based Webster is a commercial bank with $76 billion in assets and provides credit solutions and banking services to the portfolio companies of private equity firms.

Marathon, led by managing partners Bruce Richards and Lou Hanover, this year hired Brian Dolan as a managing director for its direct lending team, which is led by Curtis Lueker.

Stifel Financial Corp. and Lord Abbett & Co. announced a private credit joint venture in June. Barclays Plc in April partnered with AGL Credit Management, followed by PNC Financial Services Group Inc. teaming up with TCW Group Inc. and Raymond James joining forces with Eldridge Industries.

--With assistance from Paula Seligson.

(Updates with deal confirmation.)

Most Read from Bloomberg Businessweek

• The Fried Chicken Sandwich Wars Are More Cutthroat Than Ever Before

• Online Shopping Warehouses Are Reshaping Rural America

• Japan’s Tiny Kei-Trucks Have a Cult Following in the US, and Some States Are Pushing Back

• RTO Mandates Are Killing the Euphoric Work-Life Balance Some Moms Found

• The FBI’s Star Cooperator May Have Been Running New Scams All Along

©2024 Bloomberg L.P.