Key Takeaways
- • Rithm Capital has agreed to acquire Crestline Management, L.P., an alternative investment manager with approximately $17 billion in assets under management, according to a Business Wire press release.
- • The combined Rithm platform, including Sculptor, will total $98 billion in investable assets: $45 billion on balance sheet and approximately $53 billion in AUM, supported by over 200 investment professionals.
- • The deal adds direct lending, fund liquidity solutions, and insurance and reinsurance capabilities, marking Rithm's entry into insurance and reinsurance.
- • Crestline's investment team, committees, and strategies will remain unchanged, and its offices in Fort Worth, New York, Toronto, Tokyo and London will be maintained.
- • The transaction is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals and closing conditions.
Summary
Rithm Capital Corp., described as a global alternative asset manager, announced a definitive agreement to acquire Crestline Management, L.P., an alternative investment manager with approximately $17 billion in AUM. The company said the acquisition advances its strategy of building a global, diversified asset management platform, extending its capabilities across direct lending, fund liquidity solutions, insurance and reinsurance, and adding to existing strengths in asset-based finance, real estate, structured and corporate credit, and energy and infrastructure.
Upon completion, Rithm's combined platform, including Crestline and Sculptor Capital Management, will comprise $98 billion in investable assets, consisting of $45 billion on balance sheet and approximately $53 billion in assets under management. The company said it will offer institutional investors a broad range of strategies across asset classes and return profiles, powered by more than 200 investment professionals.
Founded in 1997 and headquartered in Fort Worth, Texas, Crestline offers private credit and alternative investment strategies across direct lending, opportunistic credit, and fund liquidity solutions. It manages strategies on behalf of its wholly owned insurance company and an affiliated reinsurer, and delivers products through commingled funds, managed accounts and a BDC. According to the release, Crestline has tripled its AUM since 2018.
Rithm CEO Michael Nierenberg said the transaction demonstrates the value of the company's differentiated platform and establishes its entrance into insurance and reinsurance. Crestline CEO and Founding Partner Doug Bratton said the firm chose Rithm for its platform, resources and entrepreneurial approach to accelerate its next phase of growth. Managing Partner and CIO Keith Williams said the combination strengthens the firm's ability to deliver differentiated alpha.
Upon closing, Crestline's investment team, committees and strategies will remain unchanged. The transaction is expected to close in Q4 2025, subject to customary regulatory approvals. J.P. Morgan Securities LLC advised Rithm as exclusive financial advisor, with Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel. Piper Sandler & Co. advised Crestline as exclusive financial advisor, with Jackson Walker LLP as lead legal counsel, and Akin, Vinson & Elkins and Paul Hastings LLP as specialist counsel.
Upon completion, Rithm's combined platform, including Crestline and Sculptor Capital Management, will comprise $98 billion in investable assets, consisting of $45 billion on balance sheet and approximately $53 billion in assets under management. The company said it will offer institutional investors a broad range of strategies across asset classes and return profiles, powered by more than 200 investment professionals.
Founded in 1997 and headquartered in Fort Worth, Texas, Crestline offers private credit and alternative investment strategies across direct lending, opportunistic credit, and fund liquidity solutions. It manages strategies on behalf of its wholly owned insurance company and an affiliated reinsurer, and delivers products through commingled funds, managed accounts and a BDC. According to the release, Crestline has tripled its AUM since 2018.
Rithm CEO Michael Nierenberg said the transaction demonstrates the value of the company's differentiated platform and establishes its entrance into insurance and reinsurance. Crestline CEO and Founding Partner Doug Bratton said the firm chose Rithm for its platform, resources and entrepreneurial approach to accelerate its next phase of growth. Managing Partner and CIO Keith Williams said the combination strengthens the firm's ability to deliver differentiated alpha.
Upon closing, Crestline's investment team, committees and strategies will remain unchanged. The transaction is expected to close in Q4 2025, subject to customary regulatory approvals. J.P. Morgan Securities LLC advised Rithm as exclusive financial advisor, with Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel. Piper Sandler & Co. advised Crestline as exclusive financial advisor, with Jackson Walker LLP as lead legal counsel, and Akin, Vinson & Elkins and Paul Hastings LLP as specialist counsel.
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