Marathon closes distressed fund at $2.5bn

New York-based Marathon Asset Management announced its close of Marathon Distressed Credit Fund, which attracted $2.5 billion in investor commitments. Distressed credit funds saw great investor interest throughout much of 2020 as investment opportunities arose following the start of the COVID-19 pandemic. “While the broader market has recovered, the K-shaped recovering has resulted in a disparate impact that requires tailored capital solutions to help companies across industries recover from the 2020 cyclical decline,” said Bruce Richards, chairman and chief executive officer of the $20 billion firm. “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.” The fund is set to invest in a wide range of situations by providing capital solutions that allow companies to grow or reposition of their businesses, including stressed and distressed companies in transition. Marathon said it intends to invest in restructurings, debtor in possession financings and exit financing where Marathon can bring its expertise in the credit markets to bear. “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,” said Louis Hanover, chief investment officer of Marathon. Jason Friedman, partner and head of corporate strategies, added that there are a varied set of opportunities to invest in companies backed by secular growth drivers that are confronting cyclical headwinds.

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