Marathon Asset Management Closes $1.7 Billion Asset-Based Lending Fund

By: Marathon Asset Management via Business Wire

July 10, 2023 at 09:00 AM EDT

Oversubscribed fund to provide bespoke capital solutions across several industries

Marathon Asset Management (“Marathon”), a leading global credit investment manager, today announced the final close for Marathon Secured Private Strategies Fund III, the third vintage of its closed-end asset-based lending (“ABL”) fund. The Fund, which was oversubscribed, accepted $1.7 billion of capital commitments from a global base of institutional and high net worth investors.

As traditional lenders have downsized their lending programs, Marathon’s ABL strategy is designed to pursue compelling returns for clients by creating a diversified portfolio through sourcing, underwriting, and structuring attractive private investments that exhibit principal protection, robust asset coverage and predictable cashflows. In addition to originating loans, Marathon intends to capitalize on the increase of secondary loan market opportunities, as select undercapitalized financial institutions seek to improve their financial condition through asset sales.

“ABL has become a core component within private credit portfolios, and our Marathon Secured Private Strategies program provides a differentiated strategy that we believe will continue to deliver attractive absolute returns throughout credit cycles,” said Bruce Richards, Chairman & Chief Executive Officer of Marathon. “It's the Golden Era of Credit, and the talented men and women who represent our extraordinary team are energized to think creatively, work diligently, and invest wisely on behalf of our limited partners.”

Marathon’s fully integrated group of investment professionals has worked together through multiple credit cycles and possesses sector expertise across several verticals, including residential whole loans, commercial real estate lending, aviation leasing, maritime finance, intramodal transportation assets, healthcare and royalty finance, auto and consumer finance, equipment finance, and corporate ABL.

Ed Cong, Marathon’s most recently named Partner and co-portfolio manager for the ABL program, commented: “It’s an exciting time for asset-based lending as investments can be sourced in a variety of forms, including primary origination, capital relief transactions and discounted asset sales. Our team is laser-focused on delivering for clients and serving as a collaborative partner to borrowers, while maintaining appropriate covenants and advance rates, full transparency and best reporting practices.”

About Marathon:

Marathon is a New York-based global investment advisor investing in the public and private credit markets with over $20 billion of capital under management. The firm was founded in 1998 and is managed by Bruce Richards (Co-Founder & CEO) and Louis Hanover (Co-Founder & CIO) and employs more than 180 professionals, with 9 Partners that includes Christine Chartouni, Ed Cong, Jason Friedman, Jeff Jacob, Jamie Raboy, Andy Springer, Gaby Szpigiel. Its corporate headquarters are in New York City, and it has offices in London, Tokyo, Miami, Los Angeles, and Luxembourg. Marathon is a Registered Investment Adviser with the Securities and Exchange Commission. For more information, please visit the company’s website at www.marathonfund.com.