With more than $19 billion 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 Singapore.
The firm primarily works with institutional investors, advising them on privately offered pooled investment vehicles and separately managed accounts. 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 84 advisors around the world.
Richards and Hanover are still with the firm, serving as chairman and CEO and as chief investment officer, respectively. They both own interests in the firm, as do several employees, though to smaller degrees. In 2016, Blackstone Group took a passive minority stake, a tribute to the firm’s leadership and success.
What Types of Clients Does Marathon Asset Management Accept?
According to recent SEC data, Marathon Asset does not have any individual clients. It works primarily with institutional investors (via pooled investment vehicles), along with state or municipal government entities, other investment advisors, investment companies and insurance companies. That said, the firm states in its brochure that it will serve high-net-worth individuals who are financially sophisticated.
Marathon Asset Management Minimum Account Sizes
Required account minimums depend on the investing strategy, client type and client. Generally, the minimum ranges from $100,000 to $100 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 says that it 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 its management fees on net AUM. Those fees range from approximately 0.30% 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
As mentioned earlier, Marathon Asset works primarily with institutional, governmental and corporate entities. It does not provide financial planning or wealth management services. It also does not work with small investors or rookie investors.
Marathon Asset had no disclosures within the past 10 years 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.
Where Is Marathon Asset Management Located?
As mentioned earlier, Marathon Asset has offices in New York, London and Singapore. Its New York office is in Midtown, at One Bryant Park, 38th Floor, New York, NY 10036.
All information was accurate as of the writing of this article.
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