Marathon AM and Webster Bank form private credit joint venture
Marathon Asset Management and Webster Financial Corporation have agreed a private credit partnership, the latest tie-up between traditional banks and direct lenders to tap into the fast-growing asset class.
Marathon is a global asset manager focused on the public and private credit markets, with more than $23bn (£18.1bn) under management.
Webster Financial is the holding company for Webster Bank, a commercial bank based in Stamford, Connecticut, with $76bn in assets.
The new joint venture will focus on delivering direct lending solutions to sponsor-backed middle market companies, utilising both firms’ credit expertise and private equity sponsor relationships.
Senior secured loans will be originated across various industries in which Webster Bank and Marathon have established track records of investing.
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“This joint venture allows Webster to better serve and support our clientele, while at the same time diversifying our revenue and realizing a greater portion of our sponsor franchise’s capabilities,” said John Ciulla, chairman and chief executive of Webster Financial Corporation. “We will be able to offer our clients larger facilities and additional financing solutions alongside the outstanding client experience Webster has always provided. Expanding our capabilities with this venture will have the added benefit of generating asset management income.”
Bruce Richards, chief executive and chairman of Marathon, said: “Marathon is proud to announce this unique private credit partnership with Webster Bank. Both companies possess deep private equity sponsor relationships, a strong reputation in the middle market, and a renowned investment team dedicated to middle market lending. By combining our strengths, together we have created a powerful partnership in direct lending that will benefit our investors for years to come.”
Simpson Thacher acted as legal adviser to Webster Financial Corporation. The Simpson Thacher team included partners Amanda Allexon and Spencer Sloan from the financial institutions team and partners Jaclyn Starr and Tom Bell, and associate Ben Cermak from the funds team.
The partnership is the latest in an array of private credit joint ventures, as firm tap into the opportunities presented by the $1.7tn industry.
Eldridge Industries and Raymond James have joined forces to launch a new private credit business, while Barclays has partnered with AGL Credit Management.
