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Marathon Asset Management

Marathon Asset Management

Financial Services

New York, NY 43,813 followers

Your Investment Partner for the Long Run

About us

Marathon Asset Management is a leading global asset manager with $23B in AUM specializing in the Public and Private Credit markets with an unwavering focus on exceptional performance, partnership and integrity. Marathon's integrated global credit platform is driven by our specialized, experienced and disciplined investment teams across Private Credit (Direct Lending, Asset-Based Lending, Opportunistic Credit) and Public Credit (High Yield, Leveraged Loans & CLOs, Emerging Markets, and Structured Credit). Marathon's investment programs are built on unique origination platform, rigorous fundamental research, and robust risk management to create attractive and resilient portfolios on behalf of our clients. Founded in 1998, Marathon is driven by our mission to deliver exceptional investment performance and cultivating lasting strategic partnership with our clients, including leading institutional investors: public and corporate pension plans, sovereign wealth funds, endowments, foundations, insurance companies, family offices, and RIAs. Marathon’s 190 professionals work from our offices in New York, London, Luxembourg, Miami and Los Angeles. Marathon is registered with the U.S. Securities and Exchange Commission (SEC) and Financial Services Authority ("FSA") in the UK. Marathon is a signatory of the Principles for Responsible Investment (PRI). For additional information, please visit Marathon’s website at https://marathonfund.com.

Website
http://www.marathonfund.com
Industry
Financial Services
Company size
51-200 employees
Headquarters
New York, NY
Type
Privately Held
Founded
1998
Specialties
Alternative Asset Management, Corporate Credit, Structured Products, Distressed Debt, Opportunistic Credit and Capital Solutions, Emerging Markets, European Credit, Fixed Income, Direct Lending, Real Assets, Healthcare, Real Estate Equity & Debt, Transportation, CLOs, Asset-Based Lending, Multi-Asset Credit, High Yield, Leveraged Loans, Structured Credit, and Direct Lending

Locations

Employees at Marathon Asset Management

Updates

  • Marathon Asset Management reposted this

    View profile for Bruce Richards
    Bruce Richards Bruce Richards is an Influencer

    CEO & Chairman at Marathon Asset Management

    The Tariff Rollercoaster: In Q1, imports surged 41.3% as businesses front-loaded purchases ahead of Trump's tariffs, subtracting more than 5 percentage points from headline GDP growth, resulting in Q1 GDP to contract 0.5%. Q2 saw the exact reverse: imports plunged 30.3% while exports fell only 1.8%, contributing over 5 percentage points to GDP growth, representing the largest trade contribution to GDP on record since 1947, enabling Q2 GDP to grow +3.0%. The tariff rollercoaster is on exhibit with the huge spike in Q1 offset by the big plunge in Q2 (see chart below). Net-net is that businesses simply drew down inventories built up in Q1, as GDP in the first half of 2025 slowed to +1.2 growth rate. Volatility in trade should begin to settle down. In July, trade deals were announced with the EU, Japan, South Korea and 5 other Asian countries. Autos, apparel, metals, materials, machinery, however, the most interesting sectors to watch is Pharma: Pharmaceuticals currently have a "tariff holiday" from reciprocal tariffs, but separate pharmaceutical-specific tariffs are expected to be announced soon, potentially at rates of 25% or higher. The industry is in a temporary reprieve period while the administration prepares sector-specific tariffs justified on national security grounds. August 1 has arrived; stiffer tariffs go into effect today for countries who have not negotiated deals. Happy August, Happy Friday.

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  • Marathon Asset Management reposted this

    View profile for Bruce Richards
    Bruce Richards Bruce Richards is an Influencer

    CEO & Chairman at Marathon Asset Management

    Why Worry: Q1 GDP was negative (-0.5%) given massive imports. Q2 GDP surged +3.0% as correction in imports (30% decline in imports in Q2, offsetting the Q1 import surge; note that Imports - Exports). GDP for 1st Half 2025 is running roughly +1.2%, a clear slowdown from prior year. Price Inflation Index is now steady at 2.5%. Hours later after these important economic reports, the two Fed concluded its meeting with the two Governors that are under consideration for the next Fed Chair voting to cut rates while Chairman Powell kept Fed Funds in place at 4.25-4.5%. Given GDP and inflation, Fed Funds should be 3%. Powell will likely lower rates later this year, which will help him preserve his legacy since he was slow to increase rates, and now too slow to recognize that rates are too high. For now, Powell is keeping rates too high because he is worried about inflation roaring its ugly head while there is no sign of this occurring (tariffs represent one-time price step up). By next May we will have a new Fed Chair, which the markets know will be a dove. Credit and Equity Markets will take a favorable view to this development. The chart below shows volatility in GDP last two quarters. Note that domestic purchases are resilient, yet clearly slowing as consumer consumption slows on the margin. The consumer is strong financially, with job strength, wage gains and wealth accumulation, yet: 1) dispersion remains wide, 2) consumers have taken a marginally more conservative posture with respect to spending. Deal activity in Private Equity and Private Credit will accelerate, credit spreads to remain stable, CRE valuations begin to climb their wall of worry, technological change accelerates. Exciting times ahead.

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  • Marathon Asset Management reposted this

    View profile for Bruce Richards
    Bruce Richards Bruce Richards is an Influencer

    CEO & Chairman at Marathon Asset Management

    M&A Activity Surges Amid Policy Tailwinds and Economic Resilience: M&A activity is roaring back to life, fueled by a potent combination of resilient global growth, falling interest rates, deregulation, and greater clarity around tariffs and geopolitical risks. This new macro and policy backdrop has unleashed a fresh wave of corporate confidence, empowering CEOs and Boards to pursue bold, strategic combinations. Financing costs have declined meaningfully, with loan rates down 50 basis points in the U.S. and over 100 basis points in Europe in 2025, sharpening the math for LBOs. Meanwhile, deregulation has reduced political friction, increased certainty of regulatory approval, and accelerated deal timelines. In parallel, tariffs, once a cloud over global dealmaking, are now priced into when evaluating cross-border transactions for exporters and importers. Spin-offs are also on the rise as companies sharpen their strategic focus. U.S. spin-off volume doubled in Q2 2025, as firms seek to unlock value and shed non-core assets. The environment is now one of action, after a long period of hesitation. This resurgence comes at a critical juncture for Private Equity. With ~30,000 sponsor-owned portfolio companies globally, the industry has faced mounting exit pressure, especially for 2016–2021 vintage funds, which have reported ~20% lower DPI relative to prior funds. We are seeing green shoots with M&A up 20% and bankers on pace for their best year since 2021: IPOs, sponsor-to-sponsor deals, M&A exits, and dividend recaps are all re-accelerating. For credit investors, this is equally constructive, since ~50% of LBO capital structures are funded with debt, higher deal velocity directly supports origination pipelines. Sectors like technology, defense, energy, healthcare, transportation and business services are leading the rebound, offering rich pipelines for both equity and debt capital providers. Union Pacific-Norfolk Southern, Baker Hughes -> Chart Industries, Charter -> Cox, Alphabet -> Wiz are setting the tone, with significantly more to come as this momentum is highly likely to continue. Could it be that the best is yet to come?

  • Marathon Asset Management reposted this

    View profile for Bruce Richards
    Bruce Richards Bruce Richards is an Influencer

    CEO & Chairman at Marathon Asset Management

    Some of Best Investments are the Deals You Didn't Do Marathon Asset Management passes on opportunities that fail to meet our underwriting standards, even when the upside appears tempting. Staying disciplined, especially in frothy markets is paramount as we work diligently to protect capital and construct our portfolio around high-conviction investments. While tempting to most, refusing to chase yield or compromise credit standards is critical to long-term fund performance. A thoughtful “no” is the invisible alpha that drives superior fund performance. Randy Raisman, who leads Marathon’s U.S. Opportunistic Credit team was recently quoted in an article published by PitchBook where he said: “there is no shortage of places to put money to work," but one area that Randy has been wise to say "no" to is the lower-rated retailers that are feeling pressure from secular challenges, margin pressure, over-leveraged balance sheets, and most recently tariffs as he stated “retail is in the eye of the tariff storm." Tariffs impact goods, not services, and domestic retailers are feeling the pinch. Raisman took a close look at these 3 deals and provided a thoughtful “no." 1. Saks, the famed luxury department store issued $2.2 billion of 5-year HY bonds on December 10th, 2024, that now trade at 27 cents, down from par in 8 months- Ouch! 2. At Home Group, the discounter for home goods with 260 stores across 40 states filed for BK with $2 billion in debt last month. 3. Pharmacy retailer Rite-Aid, which filed for BK eliminating billions in debt in its first BK, filed for BK a 2nd time with a going-concern that remains questionable. Default rates have recently declined, and I expect this to continue as financial conditions have improved. Caution with respect to building products, auto parts, renewables, specialty pharma, media, and retailers require caution, the overall market conditions are robust. Pitchbook LCD shows that the BSL default rate fell to 1.25% (issuer count), however, if one calculates defaults by including distressed exchanges or LME's, the rate is considerably higher (4.46%, by issuer) as can be seen in the chart below. All signs point to a constructive backdrop for credit: the Fed soon set to ease, peak tariff risk now behind us, solid earnings with Y-o-Y growth of 10% for S&P 500, little risk of recession, steady job and wage growth leading to improvement in consumer credit. These macro tailwinds support credit spreads, credit quality, and I expect loan demand to strengthen as financial conditions have improved. All this is great news for credit markets. Anyone can make a loan, it is those who do so with a discerning eye that generate alpha since near-zero loss rates usually put the credit manager in the top-quartile.

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  • Marathon Asset Management reposted this

    View profile for Bruce Richards
    Bruce Richards Bruce Richards is an Influencer

    CEO & Chairman at Marathon Asset Management

    Macro Monday - big week ahead for markets: - EU and Japan agreed 15% tariffs on exports, while purchasing goods/investing in U.S. (Japan $550B, EU $650B). EU Commission President Ursula von der Leyen was highly understanding and complimentary to striking a deal when she emerged from the meeting this weekend with President in Scotland (chart below). With August 1st trade deal deadline, additional announcements will be forthcoming this week. Each trading partner begins paying rates outlined in the President's letter to nearly 200 countries that will eventually settle into 15-20% range, according to a survey of economist. Bullish as peak trade risk is behind us. - Chairman Powell to hold rates firm this week, so it’s not what he does, it’s what he will say at the Fed’s post-meeting press conference. It’s particularly intriguing since President Trump was the first President to pay a visit to the Federal Reserve since 2006, when he toured the Eccles Building to see the $3B renovation, telling Powell that rates are too high, reminding him that high rates are holding back growth. It’s not “if”, it’s “when” the Fed begins to ease rates, since the neutral rate is 150bps too high (should be 3%, not 4.5%). One way or another the President will get his way when he appoints a dovish Fed Chair in May ‘26. Bullish. - PCE inflation data released on Wednesday will likely show subdued inflation, one that is trending lower. Tariffs may have a marginally higher impact to inflation; however, we have seen little impact thus far since importers and exporters have absorbed most of this cost friction. Slightly Bullish. - Q2 GDP released Wednesday: Atlanta Fed GDPNow expects +2.4% Q2 GDP; NY Fed forecast is +1.7%; Q2 combined with Q1 shows a slowing economy but no risk of recession: AI productivity boom, deregulation, Fed beginning to ease later this year, tariffs settled, passage of the BBB - all signs point to improved economic momentum in the next year. Bullish. - 38% of S&P 500 reports Q2 earnings this week. Dispersion among the 34% of companies reporting Y-o-Y Q2 EPS: Tech Sector +18%; Financials +16.7%, Energy -23.9%; Healthcare -4.7% (bar chart below, big beat ratio). Strong performance by bank stocks indicates risk on with less regulations, more favorable capital requirements, lower loss expectations in loan book, steeper yield curve driving NIM. STOXX 600 (EU) bank stocks are +28% y-t-d w/improved growth, ECB aggressively lowered rates. Equity markets at all-time highs currently pointing higher as peak uncertainty behind us. Bullish. - Employment report due Friday likely shows job and wage growth that’s supportive for consumers. Neutral to Bullish. All signs point to a constructive backdrop: easing inflation, dovish Fed pivot, tariff clarity, solid earnings, and stable GDP, inflation, and jobs data. These macro tailwinds support firm credit spreads, improved credit quality, and strong loan demand, great news for credit markets overall.

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  • Marathon Asset Management reposted this

    View profile for Bruce Richards
    Bruce Richards Bruce Richards is an Influencer

    CEO & Chairman at Marathon Asset Management

    Autonomous Vehicles The AV revolution is underway. Driven by breakthroughs in AI, compute, and simulation, and dramatic cost reduction in sensors and hardware, Robotaxis are being tested in several U.S. cities. Globally there are more than 30 companies piloting/scaling fleets. In the U.S. there are 10 million workers who drive for a living: a) 3.5M truck drivers, b) 2M ride-hailing drivers (Uber, Lyft), c) 1M delivery van drivers (UPS, FedEx, Courier), d) 500k bus drivers (school & transit), e) 400k taxis, and f) 3M drivers in the GIG economy (food delivery) - representing 6.25% of the total workforce. Globally, there are ~400M workers globally that drive for a living. The truck driver or Uber driver replaced by AV is estimated to cut costs per mile by more than half. The implications are massive. In the U.S annually, auto accidents result in 44,000 fatalities, 2.3 million injuries with an economic cost of $350 billion annually (medical, productivity loss, property damage, legal expense). AVs are expected reduce accidents by 90%+. AI on wheels as one analyst labels it, is powered by neural networks, trained on billions of road miles (Waymo alone has logged 100 million with no human driver behind the wheel). Tesla recently launched its pilot program at a price point well below Uber ($4.20 per ride), while Uber itself plans to deploy 20,000 AV (no driver). Bank of America estimates a $1.2 trillion AV spend on robotaxis, logistics, delivery, agriculture, and public transit. This shift could redefine urban design, free up parking, reduce congestion, and accelerate the timeline for traditional auto ownership where more people use AVs on demand vs. owned vehicles. China may lead the race given its demographic urgency and regulatory structure, but the U.S. isn’t far behind. The winners will be OEMs who master software, data, hardware integration, cost-efficient assemblage. Key technology and components are Radar, LiDAR, Camera, Chips, Cockpit to console with nearly 100 companies providing parts, technology and components that has largely evolved beyond traditional auto parts suppliers My most immediate questions/issues related to the advancement of AV include: - Employment, and potential displacement of active drivers - Demand and profitability for the auto OEMs (GM, Ford, Stellantis vs. Tesla)—new car sales, adoption, fleet size, efficiency. - Auto Parts Supplier relevance in a AV transport world - Rental Car Companies (Avis, Hertz, Budget) vs. Robotaxi model - Auto Insurance, premium vs. payout model with fewer accidents and Tesla providing vehicle insurance from their insurance arm The auto sector has underperformed in 2025; credit spreads have widened. Stay tuned, it’s early days.

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  • Marathon Asset Management reposted this

    View profile for Bruce Richards
    Bruce Richards Bruce Richards is an Influencer

    CEO & Chairman at Marathon Asset Management

    Simply Genuis The GENIUS Act establishes the U.S. as epicenter for Stablecoins, cementing its role in the global financial system as we enter the digital age. This legislation sets the regulatory framework that legitimizes digital assets with a legal and formative foundation for digital assets, while reversing the repressive framework that limited financial institutions participation and put digital asset investors at greater risk. This act signed into law by super-majority with over 100 Democrats joining their Republican colleagues to pass the bill that paves the way for innovation, fosters trust, and positions the U.S. as the epicenter of the next financial revolution. Paul Atkins, the new SEC Chair helped reverse measures put in place by Gary Gensler and other members of the prior administration whose goal was to kill digital assets. Stablecoins have a market capitalization exceeding $150 billion and now it is set to grow rapidly. Treasury Secretary Scott Bessent says Stablecoins will create trillions in demand for short-term UST since every dollar in stablecoin must maintain 100% reserve backing with short-term, high-quality liquid assets, such as UST bills. Secretary Bessent further stated that this legislation will “expand US dollar usage via these stablecoins all around the world." The Act requires monthly audits, and best practices for AML/KYC rules. By establishing clear, balanced regulations, entrepreneurs feel free to innovate utilizing blockchain technology. Stablecoins will ultimately reduce costs for businesses and consumers, as citizens around the world can transact instantaneously with minimal friction. Blockchain technologies will power the next generation of payments, as the U.S. dollar comes on-chain. Will we see a “Walmart Coin," a “JPMorgan Coin?" Will the payment rails begin to move away from Visa and MasterCard? The American Bankers Association (ABA) warned that banks avoiding stablecoins risk losing customer deposits to fintech companies or other banks issuing stablecoins, i.e., cross-border payments or remittances. Other major currencies such as the Euro and the Yen will move towards a stablecoin architecture as there are strong use cases to drive efficiency gains and cost savings. Beneficiaries: USDC, Coinbase and other exchanges (Kraken), Banks who now have a green light to trade and custody digital assets, or issue their own stablecoin, while PayPal and select fintech companies should also benefit. Bankruptcy laws are also favorable for stablecoin holders since the law states that stablecoin holders must be paid if front of other creditors. As a credit investor focused on principle protection, an important feature of stablecoins is they are 1:1 backed by treasuries and other liquid assets. What other assets will move on to the blockchain for efficiency, transparency, and cost savings? We are already seeing mortgages and notably, a major credit manager has raised >$100m for Private Credit on the blockchain.

  • Marathon Asset Management reposted this

    View profile for Bruce Richards
    Bruce Richards Bruce Richards is an Influencer

    CEO & Chairman at Marathon Asset Management

    Past Performance Does Not Guarantee Future Results: (But It Usually Does). Despite the standard disclaimer that “past performance does not guarantee future results,” empirical data suggests that when evaluating private equity and private credit funds, past performance is indeed indicative of future results. Research by a leading investment consultant and a top-tier private markets data provider shows top-quartile managers tend to deliver strong performance in subsequent funds, especially when the observed manager has demonstrated such results in consecutive fund vintages. One study analyzing over 1,400 fund families found that top-quartile results are highly repeatable, particularly when they have demonstrated this track record over a six-year period that include 2 successive fund vintages. Another analysis of more than 1,700 funds confirmed that top-quartile managers consistently outperform their mean peers in subsequent vintages. This persistence isn’t coincidence. It reflects institutional advantages: experienced and highly motivated investment teams, repeatable investment processes, disciplined underwriting and structuring expertise, economic alignment, and proprietary deal sourcing networks. These strengths create structural edge, and that edge compounds generating alpha and absolute returns that consistently outperforms relevant benchmarks across market cycles. Sophisticated allocators and investment consultants evaluate performance holistically, assessing not just IRR, but also MOIC and DPI, which I call the tri-vector of investment performance. While a firm’s infrastructure, risk management, culture, are all important, the three dimensions of performance (IRR, MOIC, DPI) will always represent the cornerstone by which investment managers are measured. The Investment Advisors Act of 1940 requires that performance advertising by registered investment advisors (PE and PC operating in the U.S.) included relevant disclosure and disclaimers when marketing fund offerings, most sophisticated investors rely on historical performance for a reason. While there are no guarantees in life beyond death and taxes, when it comes to manager selection, track record matters. I believe that the strongest predictor of future outperformance is an alternative asset manager with all the requisite skills who has consistently done it before.

  • Marathon Asset Management reposted this

    View profile for Bruce Richards
    Bruce Richards Bruce Richards is an Influencer

    CEO & Chairman at Marathon Asset Management

    ‘Peak’ Private Credit? A prominent bank CEO in the news has stated Private Credit has peaked. With the highest level of conviction, I can assure you that is simply not the case. First, some imply that Direct Lending (DL) defines Private Credit (PC), however, it is just one of the three main pillars that represent private credit. DL is currently the largest segment of PC, it is still growing, and I expect it to grow proportional to PE, a business that will undoubtably be bigger 5-10 years from now than it is today. As corporate earnings grow, the corporate sector at-large will support more debt that allows a company to add operating leverage, a reasonable assumption since corporate earnings grow with GDP and earnings are only temporarily interrupted by an occasional recession that comes along ~1x every 10 years or so. Second, Assrt-Based Lending (ABL) is only getting started. Although Marathon has been in the ABL business for 20 years, having invested $30B+, investor interest in ABL is just ramping up now. A leading consulting firms released its survey of institutional clients with ABL representing the #1 allocation request for the coming year. The TAM for ABL is enormous with some estimates providing a range of $30 to $40 trillion. In the next 5-10 years, I believe the ABL business overall will grow by 30% annually as AUM for ABL becomes as large as DL. The ABL outlook should enable PC to grow 2x on its own. Diversification and low correlation to DL, makes ABL a terrific compliment for PC investors (institutional, insurance, wealth management). The third PC leg to the stool is Opportunistic Credit, which includes capital solutions and special situations. Capital solutions provide tailored financing to meet a company’s strategic needs, ranging from growth capital and debt refinancing to solve for liquidity or restructuring through credit or hybrid structures, structured as debt, often with equity upside. The return objective for Opportunistic Credit should allow managers to generate higher IRRs than observed in DL & ABL. As DL has slowed over the past year, capital solutions have picked up rather significantly. PC also includes infrastructure debt, data centers, and more. Specialty finance such as litigation finance and NAV lending are not sectors that Marathon favors, however, they do represent a growth for PC. So, while, certain skeptics may question the growth of PC, you should have no doubt the direction of travel—the size and scope are huge and getting bigger. As the global economy grows $3 trillion per year (global GDP now exceeds $100 trillion), the amount of credit needed grows proportionally. Private Credit peaking? Not even close; that’s like saying the internet peaked in 2001 à before smartphones, cloud computing, streaming, social media, and more recently AI has helped to re-define the global economy. The Private Credit markets are ~$4T today and I believe it will grow to $10T over the next 7 years.

  • Marathon Asset Management reposted this

    View profile for Simon Males, MBA

    Managing Director, Trustee and Board Director

    #directlending #assetbasedlending #democratisation Hear the latest from Marathon Asset Management’s CEO Bruce Richards on future trends for #privatecredit. The big takeaway: Private Equity and Direct Lending will be a lot bigger in the years ahead. In particular the level of demand and the market size for Asset Based Lending will grow strongly to be as large as Direct Lending over the next 5-7 years. The democratisation of private markets exposure by Wealth and Savings channels will be a core driver behind this continued expansion. Click below to hear more.

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