Marathon Asset Management closes USD900m asset-based lending fund
Marathon Asset Management (Marathon), a global credit investment manager, has held the final close for its Marathon Secured Private Strategies Fund, which was oversubscribed with approximately USD900 million in commitments.
The fund will invest in a diversified portfolio of asset-based loans across the healthcare, real estate, equipment and transportation, and corporate sectors backed by secure, contractual cash-flows.
"Our asset-based lending platform has a differentiated approach that provides specialised capital solutions, enabling Marathon to create alpha through strong collateral and robust cash flow," says Bruce Richards, Chairman & Chief Executive Officer of Marathon. "Our ability to capture complexity premium while protecting principal provides our LPs with attractive income streams while minimising correlation to the broader markets."
Ed Cong, Principal at Marathon, says: "As certain borrowers and legacy asset owners continue to have limited access to efficient markets, we have a compelling opportunity to provide innovative capital solutions through loans backed by strategic, mission-critical assets across a range of sectors. These include IP rights and royalties from FDA approved drugs and medical devices, the most in-demand airplanes and containerships, diversified pools of commercial and residential real estate loans, structured consumer loans and asset-based corporate loans."
Andrew Rabinowitz, President and Chief Operating Officer of Marathon, adds: "As investors confront a combination of low interest rates and uncertain, disparate economic recoveries, we are finding that strategies focused on secured loans in the asset-backed markets are critical to our investors. Our new strategy builds upon our long track record of providing investors with strong, reliable returns across cycles in these markets and we are excited to be able to continue to help our valued clients meet their investment goals."
The fund is managed by a fully integrated team of 20 investment professionals who have worked together through multiple credit cycles and are supported by the firm's deep operational, origination and servicing capabilities and infrastructure.