Marathon Taps Ex-Ares VP to Lead €500M European ABL Push

Marathon Asset Management has hired Murad Khaled from Ares Management as a Lead Originator for its European asset-backed lending and direct lending platform, the latest signal that private credit's talent war is shifting decisively toward specialists who can navigate complex collateral structures.

Khaled joins from Ares, where he spent over four years as a Vice President focused on European direct lending and structured credit. The move comes as Marathon — which manages approximately $28 billion in alternative credit strategies — looks to deepen its presence in Europe's mid-market, where asset-backed lending has become a critical tool for companies navigating tighter bank credit and higher rates.

The hire reflects a broader strategic bet: that the next wave of private credit growth won't come from generic cash-flow loans, but from lenders willing to underwrite against inventory, receivables, equipment, and intellectual property. It's a bet that requires different skills than traditional direct lending — and one that's pulling talent from the sector's established players.

"Murad's extensive experience in originating and structuring ABL and direct lending transactions across Europe will be instrumental as we continue to grow our platform," said Louis Hanover, Co-Founder and Managing Partner at Marathon, in a statement. The firm didn't disclose Khaled's specific origination targets, but people familiar with the matter say Marathon is aiming to deploy upwards of €500 million in European ABL over the next 18 months.

Asset-backed lending — where loans are secured against specific assets rather than general enterprise value — has surged in Europe as traditional bank lenders retreat from complex, labor-intensive credit structures. ABL facilities are particularly attractive in sectors with high working capital needs: logistics, manufacturing, retail, and distribution.

Unlike cash-flow loans, which rely on EBITDA projections and covenant packages, ABL requires deep operational diligence. Lenders must understand inventory turnover, receivables aging, equipment appraisals, and liquidation dynamics. It's credit underwriting meets supply chain forensics.

That complexity has kept many generalist credit funds on the sidelines — and created an opening for specialists. Marathon, which built its reputation financing distressed and special situations credits, has the workout muscle that ABL demands when things go sideways.

The European ABL market has grown steadily since 2020, though precise sizing is difficult because many deals are privately negotiated and sit outside public databases. What's clear: demand is outstripping supply, particularly in the €25 million to €150 million range where Khaled will focus.

Khaled joined Ares Management in 2021 as an Associate and was promoted to Vice President in 2023, according to his LinkedIn profile. During his tenure, he worked on direct lending transactions across the UK, France, Germany, and the Benelux region, with a particular focus on sponsor-backed deals in the lower mid-market.

Before Ares, Khaled spent time in leveraged finance and restructuring advisory roles, giving him exposure to credits across the capital structure — experience that's particularly valuable in ABL, where recovery analysis and collateral monitoring are constant.

His hire suggests Marathon is serious about building out a European origination team rather than relying solely on broker flow or sponsor relationships. ABL is a relationship-intensive business; lenders need to be embedded with private equity sponsors, management teams, and restructuring advisors to see deals early.

Khaled will report to Marathon's European credit leadership and work alongside the firm's existing direct lending and structured credit teams. Marathon hasn't disclosed whether additional hires are planned, but building a full ABL platform typically requires dedicated asset appraisal, field examination, and portfolio monitoring capabilities — functions that go well beyond traditional credit analysts.

Marathon Asset Management, founded in 1998 and headquartered in New York, manages approximately $28 billion across private credit, real estate debt, and special situations strategies. The firm has a long history in distressed and opportunistic credit, but has broadened into performing direct lending over the past five years as LP demand for yield-oriented strategies has grown.

In Europe, Marathon has been active in direct lending since the mid-2010s, primarily through unitranche and first-lien loans to sponsor-backed companies. The firm has also participated in select opportunistic and distressed situations, particularly in the UK and Southern Europe.

Adding a dedicated ABL capability allows Marathon to move earlier in a company's lifecycle — or later, when cash-flow lending no longer works but liquidation value remains strong. It's a way to play both offense and defense in a credit environment where more borrowers are hitting covenant pressures.

The table above shows Marathon entering a competitive but fragmented market. While Ares and HPS dominate large-cap ABL, the mid-market remains underserved — especially for borrowers with complex asset bases that require bespoke structuring.

Marathon isn't building a traditional ABL shop. The firm's advantage lies in its ability to blend ABL with mezzanine, rescue capital, or equity co-investment when a situation demands it. That flexibility is particularly valuable in Europe, where many mid-market companies need more than just a revolver — they need a capital partner who can handle complexity.

Khaled's move is part of a broader talent shift in private credit. The sector added an estimated 12,000 investment professionals globally between 2020 and 2025, according to data from Preqin, with much of that growth concentrated in origination and portfolio management roles.

But the next phase of growth requires specialists, not generalists. Firms are raiding each other for people who know how to underwrite equipment leases, value intellectual property, audit receivables, or navigate cross-border collateral perfection. These aren't skills you learn in a two-year analyst program.

Ares, with over 2,800 employees and a sprawling credit platform, has become a key talent exporter. The firm's training infrastructure and deal flow make it a natural feeder for smaller, more specialized shops like Marathon. That's not a knock on Ares — it's the natural lifecycle of a maturing industry.

What's less clear is whether Marathon can build enough origination firepower to compete with scaled platforms. ABL is a volume game; the economics work best when you can spread fixed costs — field examiners, appraisal teams, monitoring software — across a large portfolio. Marathon's challenge will be originating enough deals to justify that infrastructure without overpaying for volume.

For Khaled, the move offers a chance to build something rather than slot into an established machine. Whether that bet pays off will depend on Marathon's ability to close deals in a market where sponsor relationships and speed of execution matter as much as pricing.

Marathon isn't going head-to-head with the ABL giants on large-cap sponsor deals. Instead, the firm is targeting the €25 million to €150 million loan size range — big enough to move the needle on returns, small enough to avoid bidding against HPS, Ares, and Antares on every deal.

Geographically, expect Marathon to focus on the UK, Germany, and France initially, with selective activity in Benelux and the Nordics. Southern Europe remains opportunistic but less of a priority unless distressed situations arise.

For private equity sponsors and management teams, Marathon's European ABL push is good news. More lenders means more competition, which translates to better terms, faster closings, and more flexibility on structure.

ABL facilities are particularly useful in three scenarios: buyouts of asset-heavy businesses where cash flow is lumpy; growth companies that need working capital but can't support senior debt ratios; and turnaround situations where enterprise value is uncertain but liquidation value is strong.

The challenge for borrowers is that ABL comes with operational strings attached. Lenders monitor collateral closely — sometimes weekly — and retain significant control over cash management and vendor payments. Companies that aren't prepared for that level of oversight often find ABL more intrusive than anticipated.

Marathon's distressed credit background could make it a more flexible partner in workout scenarios than banks or pure-play ABL lenders. The firm has restructuring expertise in-house and doesn't need to hand off troubled credits to a separate special situations team.

Marathon enters a European ABL market that's crowded at the top and fragmented in the middle. The largest players — Ares, HPS, Antares, Monroe Capital, and a handful of European banks — dominate sponsor-backed deals above €150 million. Below that threshold, the market splinters into regional banks, specialty finance companies, and opportunistic credit funds.

The gap in the market is for lenders who can handle complexity without charging distressed-level pricing. That's where Marathon will compete: deals that are too operationally intensive for banks, too small for the mega-funds, and too performing for distressed specialists.

The pricing ranges above are illustrative and vary significantly based on collateral quality, industry, and sponsor strength. But they show where Marathon can find daylight: in the €50 million to €150 million range, where deals are too complex for banks but don't justify the overhead of a mega-fund syndication.

Whether Khaled can build enough deal flow to hit Marathon's deployment targets remains to be seen. ABL origination is a long game — it takes 12-18 months to build a pipeline, and relationships matter more than marketing. But if Marathon can leverage its distressed credit network and sponsor relationships, it has a shot at carving out a niche.

The biggest risk is operational. ABL looks simple — lend against assets, monitor collateral, adjust advance rates — but execution is unforgiving. Miss a dilution trend in receivables or overvalue obsolete inventory, and losses compound quickly.

Marathon will need to build or outsource field examination, appraisal management, and borrowing base monitoring capabilities. Those functions are expensive and don't scale linearly. A €50 million ABL facility requires almost as much operational overhead as a €150 million one.

The second risk is competition. If European banks decide to defend their ABL market share — or if more US credit funds follow Marathon into the region — pricing could compress before Marathon builds enough portfolio to absorb the fixed costs.

The third risk is credit selection. ABL is often a last-resort financing for companies that can't support cash-flow loans. That adverse selection problem is real, and it requires disciplined underwriting and active portfolio management to avoid.

One underappreciated aspect of Marathon's strategy: the firm already knows how to manage credits that go sideways. Many ABL lenders — particularly those that grew up in the zero-rate environment — have never had to foreclose on collateral, liquidate inventory, or negotiate a DIP facility.

Marathon has done all of that. If the European credit cycle turns — and there are early signs it might, particularly in the UK and Germany — that experience could differentiate Marathon from newer entrants who've only underwritten performing credits.

Khaled's hire is a starting point, not an end state. Building a credible ABL platform requires more than one originator. Watch for Marathon to add field examination staff, appraisal partners, and potentially a European office if deal flow justifies it.

Also watch for Marathon's first few European ABL closes. The firm will need to prove it can compete on speed and structure, not just price. ABL deals often move fast — a lender that can deliver a commitment in two weeks beats a cheaper lender that takes six.

Finally, watch for LP appetite. If Marathon plans to scale European ABL beyond €500 million, it'll likely need a dedicated fund vehicle. LPs have been receptive to specialty credit strategies, but they'll want to see a track record first.

For now, Marathon is making the right moves — hiring experienced talent, targeting an underserved niche, and leveraging its existing infrastructure. Whether that translates into a sustainable competitive advantage depends on execution, relationships, and a bit of luck with market timing. But in a private credit market that's increasingly bifurcating between generalists and specialists, Marathon is betting that deep expertise in a narrow lane beats shallow coverage across the waterfront. That's a bet worth tracking.