Marathon Asset Management, a global credit investment manager, closed its Marathon distressed credit fund, which was oversubscribed with approximately $2.5 billion in commitments. The fund will invest in a range of situations by providing capital solutions that allow companies to grow or reposition their businesses, including stressed and distressed companies in transition. The fund will pursue opportunities such as restructurings, debtor-in-possession financings and exit financings.
“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,” Bruce Richards, chairman and CEO of Marathon, said. “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.”
“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,” Louis Hanover, chief investment officer of Marathon, said.
“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,” Jason Friedman, partner and head of corporate strategies at Marathon, said. “Our constructive and flexible approach to strategically working with distressed companies during recapitalizations, including restructurings, will serve our fund investors well.”