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Webster (WBS) May Tie Up With Marathon Asset for Private Credit
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Webster Financial Corp. (WBS - Free Report) and Marathon Asset Management are looking to form a private credit partnership. This was reported by Bloomberg, citing persons familiar with the matter.
The discussion between Webster and Marathon Asset is in the advanced stage. The agreement could be announced as soon as this week.
The Private credit business is turning out to be a lucrative one. The partnership between WBS and Marathon Asset, if finalized, will be the latest in a series of collaborations in recent days involving direct lenders and traditional banks in the lucrative $1.7-trillion global asset class.
The Private credit aims to cater private credit solutions to portfolio companies of private equity (PE) firms. Demand for private credit — which refers to lending to companies by institutions other than banks — has grown significantly in recent years. Amid economic slowdown concerns and tighter bank lending, private credit offers borrowers pricing certainty and speed, which helped fuel the market’s growth.
If Webster and Marathon Asset embark on this venture, they will join a burgeoning landscape of financial institutions tapping into the vast potential of the private credit market. Several global firms like Raymond James (RJF - Free Report) are set to enter into the lucrative private credit business. Through its Investment Banking (IB) division, RJF formed a strategic collaboration with Eldridge Industries and Raymond James Bank.
Likewise, in May 2024, Stifel Financial Corp. (SF - Free Report) and Lord Abbett, LLC entered into a joint agreement to establish a leveraged lending joint venture — SBLA Private Credit. This new entity will concentrate on the origination and management of existing loans to small and mid-sized portfolio companies of financial sponsors, thus augmenting the existing capabilities of both firms. SF and Lord Abbett have co-invested across multiple loans beforehand, demonstrating the strongly aligned credit cultures between both entities.
Per the Morgan Stanley report, the size of the private credit market at the start of 2024 was approximately $1.5 trillion, compared with approximately $1 trillion in 2020 and is estimated to grow to $2.8 trillion by 2028.
Hence, if announced, the collaboration will position Webster and Marathon Asset for significant growth and underscore their shared commitment to delivering tailored financial solutions to PE clients.
In the past year, shares of WBS have rallied 17.9% compared with the industry’s growth of 14.4%. It currently has a Zacks Rank #3 (Hold) company.
Image: Shutterstock
Webster (WBS) May Tie Up With Marathon Asset for Private Credit
Webster Financial Corp. (WBS - Free Report) and Marathon Asset Management are looking to form a private credit partnership. This was reported by Bloomberg, citing persons familiar with the matter.
The discussion between Webster and Marathon Asset is in the advanced stage. The agreement could be announced as soon as this week.
The Private credit business is turning out to be a lucrative one. The partnership between WBS and Marathon Asset, if finalized, will be the latest in a series of collaborations in recent days involving direct lenders and traditional banks in the lucrative $1.7-trillion global asset class.
The Private credit aims to cater private credit solutions to portfolio companies of private equity (PE) firms. Demand for private credit — which refers to lending to companies by institutions other than banks — has grown significantly in recent years. Amid economic slowdown concerns and tighter bank lending, private credit offers borrowers pricing certainty and speed, which helped fuel the market’s growth.
If Webster and Marathon Asset embark on this venture, they will join a burgeoning landscape of financial institutions tapping into the vast potential of the private credit market. Several global firms like Raymond James (RJF - Free Report) are set to enter into the lucrative private credit business. Through its Investment Banking (IB) division, RJF formed a strategic collaboration with Eldridge Industries and Raymond James Bank.
Likewise, in May 2024, Stifel Financial Corp. (SF - Free Report) and Lord Abbett, LLC entered into a joint agreement to establish a leveraged lending joint venture — SBLA Private Credit. This new entity will concentrate on the origination and management of existing loans to small and mid-sized portfolio companies of financial sponsors, thus augmenting the existing capabilities of both firms. SF and Lord Abbett have co-invested across multiple loans beforehand, demonstrating the strongly aligned credit cultures between both entities.
Per the Morgan Stanley report, the size of the private credit market at the start of 2024 was approximately $1.5 trillion, compared with approximately $1 trillion in 2020 and is estimated to grow to $2.8 trillion by 2028.
Hence, if announced, the collaboration will position Webster and Marathon Asset for significant growth and underscore their shared commitment to delivering tailored financial solutions to PE clients.
In the past year, shares of WBS have rallied 17.9% compared with the industry’s growth of 14.4%. It currently has a Zacks Rank #3 (Hold) company.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.