Sumitomo Mitsui in talks for stake in Marathon Capital: sources

SUMITOMO Mitsui Financial Group is in talks to acquire a minority stake in Marathon Capital, an independent investment bank that specialises in clean power, infrastructure and sustainable technology transactions, according to people with knowledge of the matter.

The deal would include a strategic collaboration agreement between Sumitomo Mitsui Banking Corp and Marathon, said one of the people, all of whom requested anonymity discussing the information. No deal has been finalised. If one is reached, it may be announced in coming weeks, one of the people said.

A representative for Tokyo-based Sumitomo Mitsui declined to comment. A Marathon representative declined to comment. 

Marathon was founded in 1999 by chief executive officer (CEO) Ted Brandt. The Chicago-based firm has advised on transactions including an investment by Carlyle Group in Complete Solar and Manulife Investment Management’s roughly US$400 million equity investment into Silicon Ranch, a solar developer, its website shows. 

Foreign banks have increasingly sought to bulk up in the US, which is widely considered as having the deepest global fee pool. Sumitomo Mitsui last July announced a strategic alliance with Jefferies Financial Group which included the provision of a credit line to the New York firm’s leveraged finance operations and an agreement to buy a stake of as much as 4.9 per cent in the US lender. 

Elsewhere, Sumitomo Mitsui rival Mizuho Financial Group plans to hire bankers to build its businesses with US non-investment grade companies and leveraged buyout financing.

Nomura Holdings in 2020 acquired Greentech Capital Advisors, a boutique investment bank focused on sustainable technology and infrastructure. In 2018, Daiwa Securities Group formed DC Advisory by acquiring and combining investment banking firms Sagent Advisors and Signal Hill. BLOOMBERG