(Bloomberg) -- Marathon Asset Management and Webster Financial Corp. are nearing a private credit partnership, according to people with knowledge of the matter, the latest in a string of tie-ups between direct lenders and traditional banks in the growing $1.7 trillion asset class.

Most Read from Bloomberg

The agreement may be announced as soon as this week, said the people, who asked not to be identified discussing confidential information.

Representatives for Marathon and Webster did not immediately respond to requests for comment outside of regular business hours.

Marathon, led by managing partners Bruce Richards and Lou Hanover, this year hired Brian Dolan as a managing director for its direct lending team, which is led by Curtis Lueker. Stamford, Connecticut-based Webster has a market capitalization of $7.5 billion.

Earlier this month, Stifel Financial Corp. and Lord Abbett & Co. announced a private credit joint venture, following into the footsteps of others including Barclays Plc, which partnered with AGL Credit Management, PNC Financial Services Group Inc., which teamed up with TCW Group Inc., and Raymond James, which joined forces with Eldridge Industries.

Most Read from Bloomberg Businessweek