Rithm Capital adds $17B in assets with Crestline acquisition

"The acquisition, announced on Thursday, follows Rithm's second-quarter earnings call, when Rithm executives flagged potential M&A opportunities in these areas after shelving plans for an initial public offering of Newrez. Crestline adds meaningful new credit and alternative investment capabilities, establishes our entrance into insurance and reinsurance, and creates additional value-creating opportunities for our investors and shareholders, Michael Nierenberg, Rithm CEO, said in a statement."

"Rithm has been active on the M&A front, acquiring $1.4 billion in consumer loans from Goldman Sachs, completing a $720 million purchase of Sculptor Capital Management, and striking a deal for Computershare Mortgage Services and its subsidiary, Specialized Loan Servicing. It also partnered with Upgrade on $1 billion in home improvement loans and with an institutional investor on a potential $1.5 billion in residential transitional loans. Crestline and Sculptor together bring $98 billion in investable assets$45 billion on the balance sheet and $53 billion from clientsand a combined team of 200 investment professionals."

"The companies expect the transaction to close in the fourth quarter of 2025, subject to customary regulatory approvals and closing conditions. Founded in 1997, Crestline has tripled its assets under management since 2018, managing investments for its insurance and reinsurance company, and other clients. Its structure and strategies will remain unchanged, with offices in Fort Worth, New York, Toronto, Tokyo and London."

Rithm Capital Corp. will acquire Crestline Management, adding $17 billion in assets under management and expanding into direct lending, fund liquidity solutions, insurance and reinsurance. The transaction is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals and closing conditions. The deal complements recent Rithm M&A activity, including purchases of consumer loans from Goldman Sachs, Sculptor Capital Management, and Computershare Mortgage Services, and partnerships on home improvement and residential transitional loans. Crestline brings diversified credit and alternative investment capabilities, threefold AUM growth since 2018, and will maintain its structure and global offices.

Read at www.housingwire.com