Marathon Asset Management, a leading global credit manager with $23 billion in assets under management, and Webster Financial Corporation, the holding company for Webster Bank, a top performing commercial bank with $76 billion in assets, announced they are forming a private credit joint venture, which will deliver direct lending solutions to sponsor-backed middle market companies.
The partnership combines each firm’s credit expertise, private equity sponsor relationships and standing in the middle market with Marathon’s 26-plus years of experience in asset management and Webster Bank’s full banking product suite that serves companies primarily in the middle market. The joint venture will originate directly sourced senior secured loans across various industries in which Marathon and Webster Bank have established track records of investing, with more than 100 employees from both companies working closely together, including investment and business development professionals.
“Marathon is proud to announce this unique private credit partnership with Webster Bank,” said Bruce Richards, CEO and Chairman, Marathon. “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.”
Marathon’s direct lending business provides private equity sponsors with creative financing solutions for acquisitions, refinancings and recapitalizations, while also providing borrowers with private credit asset-based lending and capital solutions.
“This partnership with Webster Bank is a natural extension of our collaboration over several years,” added Curtis Lueker, Managing Director and Head of Direct Lending, Marathon. “Together, we look forward to serving private equity sponsors as a trusted and reliable capital provider with full capabilities.”
Webster Bank’s Sponsor & Specialty Finance Group has provided credit solutions and other banking services to the portfolio companies of private equity sponsors for two decades. Its dedicated team of over 50 bankers has fostered relationships with more than 125 sponsors nationwide.
“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 Officer, 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.”
“We are excited to partner with Marathon as we augment the credit solutions available to our clients,” added Andre Paquette, Group Head of Sponsor & Specialty Finance at Webster Bank. “Webster has a strong sponsor finance business, reliable execution and client-centric approach. This will complement Marathon’s long operating history, deep knowledge of the credit markets and proven asset management expertise.”