CVC Capital Partners has agreed to acquire Marathon Asset Management in a transaction valued at up to $1.2bn.

The Amsterdam-listed buyout firm will pay $400m in cash and up to $800m in CVC equity for the base consideration. Additional earnout payments of up to $200m in cash and $200m in equity are linked to Marathon’s performance between 2027 and 2029.

The acquisition will significantly expand CVC’s footprint in the US credit market and increase fee-paying assets in its credit unit to around €61bn, or $72bn. CVC said the deal is expected to be accretive to earnings per share from 2028, before synergies.

Founded in 1998, Marathon manages more than $24bn across asset-based, real estate, opportunistic, and public credit strategies. Co-founders Bruce Richards and Lou Hanover will continue to co-head the business, which will be rebranded CVC-Marathon.

“Expanding credit capability in the US to complement our market-leading European platform has been a clear priority for CVC, and we are delighted to partner with Bruce, Lou, and the team,”  CVC chief executive Rob Lucas said in a statement. “Marathon’s outstanding track record across multiple cycles, combined with its performance and investment-led culture, aligns perfectly with CVC’s approach,” he added.

The deal underlines how large private equity firms are using acquisitions to scale specialist credit capabilities as investors favour diversified platforms. 

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