PROVIDENCE – Webster Financial Corp. and Marathon Asset Management LP are forming a private credit joint venture that will deliver direct lending solutions to sponsor-backed middle market businesses, the companies announced.
Webster Financial is the holding company for Webster Bank N.A., both of which are headquartered in Stamford, Conn. Webster Bank has $76 billion in assets and its core footprint spans the northeastern U.S. from New York to Massachusetts, including seven branches in Rhode Island.
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Marathon, a global credit manager based in New York City with offices in London, Miami, Los Angeles and Luxembourg, has $23 billion in assets under management and employs approximately 190 people. 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.
The partnership combines the firms’ credit expertise, private equity sponsor relationships and standing in the middle market with Webster’s full banking product suite that serves companies primarily in the middle market and Marathon’s 26-plus years of experience in asset management, according to a news release.
“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,” John Ciulla, chairman and CEO of Webster Financial, said in a statement. “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.”
The joint venture will originate directly sourced senior secured loans across various industries in which Webster Bank and Marathon have established track records of investing, the firms said, with more than 100 employees from both companies working closely together, including investment and business development professionals.
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, the bank said, and its banking team has fostered relationships with more than 125 sponsors nationwide.
“Marathon is proud to announce this unique private credit partnership with Webster Bank,” said Bruce Richards, chairman and CEO of 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.”
