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Marathon Asset Management Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Marathon Asset Management, L.P.

With billions in assets under management (AUM), Marathon Asset Management, L.P. is a global asset manager with an expertise in distressed debt. It’s based in New York, with offices also in London and Tokyo.

The firm primarily works with institutional investors, advising them on privately offered pooled investment vehicles and separately managed accounts. The firm manages its own funds, including hedge funds and securitized asset funds. In 2009, the U.S. Treasury selected Marathon Asset to be one of nine managers of the Public-Private Investment Program.

Marathon Asset Management Background

After working together at Smith Barney, Bruce Richards and Louis Hanover co-founded Marathon Asset in 1998. They came together with the idea of buying the debt of bankrupt or very stressed companies. Since then, the firm has expanded into other credit markets and real estate-related markets, employing many advisors around the world.

Richards and Hanover are still with the firm, serving as chairman/CEO and chief investment officer (CIO), respectively. They both own interests in the firm, as do several employees to smaller degrees. In 2016, Blackstone Group took a passive minority stake in the firm.

Marathon Asset Management Client Types and Minimum Account Sizes

According to recent SEC data, Marathon Asset does not have any individual clients. Instead, it works primarily with institutional investors via pooled investment vehicles, along with government entities, investment advisors, investment companies, insurance companies and sovereign wealth funds. That said, the firm states in its brochure that it will serve high-net-worth individuals who are financially sophisticated.

Required account minimums depend on the investing strategy, client type and client. Generally, the minimum goes up to $400 million. The firm may waive or change the minimum at its discretion.

Services Offered by Marathon Asset Management

As mentioned earlier, Marathon Asset initially made its name in distressed debt. It is a specialist in global corporate, emerging market and structured credit markets. With its expertise and experience over multiple economic cycles, it advises primarily institutional investors on privately offered pooled investment vehicles and separately managed accounts. The firm also has a private credit business that offers direct lending, asset-based lending (including healthcare and aircraft leasing) and real estate lending. Additionally, it may serve as a sub-advisor to other investment companies and as a collateral manager to collateralized loan obligations.

Marathon Asset Management Investing Philosophy

Marathon Asset focuses on situational investing in the global credit and fixed-income markets. Generally, its investing approach involves fundamental, bottom-up analysis and risk management discipline. Its investment strategies include:

  • Corporate credit: invests across the capital structure, including in dislocated, mispriced, stressed and distressed corporate bonds in the U.S., Europe and Asia 
  • Leveraged loans: invests in the senior secured loans of companies primarily in the U.S. and Europe 
  • Emerging markets: invests in sovereign debt, quasi-sovereign debt, corporate debt and special situations in hard currency and local denominations in emerging markets
  • Structured credit: invests in residential mortgage-backed securities, commercial mortgage-backed securities, collateralized loan obligations and consumer and asset-backed securities
  • Private credit: invests in less-liquid and illiquid debt instruments
  • Real estate: invests in senior debt secured by commercial real estate, direct ownership of complex opportunistic real estate assets, including multifamily, office, warehouse/logistics, hospitality and retail properties

Fees Under Marathon Asset Management

Marathon Asset typically bases the management fees it charges its clients and funds on net AUM. These fees range from approximately 0.20% to 2.00% annually, depending on the fund, nature of investments and other factors. In some cases, it also charges a performance-based fee that can be generally up to 20% of the account’s annual profit or cash distributions. The firm may negotiate fees at its discretion.

What to Watch Out For

Marathon Asset has no disclosures to report in its SEC filings.

Opening an Account With Marathon Asset Management

To contact Marathon Asset, call its New York headquarters at (212) 500-3000.

All information was accurate as of the writing of this article. 

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How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research