Rithm Capital, a global alternative asset manager known for its expansive reach across credit, real estate, and structured finance, has announced a definitive agreement to acquire Crestline Management, L.P., a respected alternative investment firm with approximately $17 billion in assets under management.
This deal marks a significant milestone in Rithm’s ongoing strategy to build a comprehensive, multi-dimensional asset management platform capable of delivering consistent performance and long-term value to both institutional investors and shareholders.
The addition of Crestline is more than a simple expansion—it’s a strategic alignment that deepens Rithm’s capabilities in several key areas. Crestline brings with it a robust suite of private credit and alternative investment strategies, including direct lending, opportunistic credit, and fund liquidity solutions. These offerings complement Rithm’s existing strengths in asset-based finance, structured and corporate credit, real estate, and infrastructure. Perhaps most notably, Crestline also adds insurance and reinsurance capabilities to Rithm’s platform, opening new avenues for capital deployment and risk management.
Once the transaction is complete, Rithm’s combined platform—including Crestline and Sculptor Capital—will manage approximately $98 billion in investable assets. This includes $45 billion held on balance sheet and $53 billion in assets under management. With more than 200 investment professionals across the platform, Rithm will be positioned to offer a broad spectrum of strategies tailored to a wide range of investor needs, from conservative income generation to opportunistic growth. The scale and diversity of this platform will allow Rithm to respond nimbly to market shifts while maintaining a disciplined approach to risk and return.
Crestline, founded in 1997, has built a reputation for innovation and adaptability in the private markets. Over the past several years, the firm has experienced significant growth, tripling its assets under management since 2018. Its investment strategies are delivered through a mix of commingled funds, managed accounts, and a business development company (BDC), and it also manages capital on behalf of its wholly owned insurance company and affiliated reinsurer. This integrated model has allowed Crestline to develop a unique perspective on credit markets and capital solutions, making it a valuable addition to Rithm’s broader platform.
Importantly, the acquisition is structured to preserve Crestline’s operational independence and investment philosophy. Upon closing, Crestline’s investment team, committees, and strategies will remain intact, and the firm will continue to operate from its existing offices in Fort Worth, New York, Toronto, Tokyo, and London. This continuity ensures that clients and partners will experience no disruption in service or strategy, while benefiting from the enhanced resources and reach that come with being part of a larger organization.
The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals and customary closing conditions. While the financial terms of the deal have not been disclosed, the strategic rationale is clear: Rithm is building a platform that can thrive across market cycles, deliver differentiated returns, and serve as a trusted partner to investors around the world.
As the alternative investment landscape continues to evolve, scale and specialization are becoming increasingly important. With the acquisition of Crestline, Rithm is reinforcing its commitment to both. The firm is not only expanding its product offerings but also deepening its expertise in areas that are critical to institutional investors—credit, liquidity, insurance, and global reach. This move positions Rithm to be a leader in the next generation of asset management, where innovation, integration, and insight will define success.
Advisors: J.P. Morgan Securities acted as the exclusive financial advisor to Rithm and Skadden, Arps, Slate, Meagher & Flom served as legal counsel to Rithm. Piper Sandler acted as the exclusive financial advisor and Jackson Walker acted as lead legal counsel to Crestline with specialist counsel at Akin, Vinson & Elkins, and Paul Hastings.
KEY QUOTES:
“This transaction demonstrates the power of our differentiated asset management platform and our commitment to diversifying our investment strategies. 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. We are excited to leverage our expanded product suite and like-minded cultures focused on entrepreneurship, innovation, and investment excellence as we seek to capitalize on the substantial opportunities ahead.”
Michael Nierenberg, Chief Executive Officer of Rithm
“We are excited to be joining Rithm, an industry-leading alternative asset manager with deep expertise in asset-based strategies and a shared focus on building innovative solutions that deliver alpha to investors. As we considered a variety of strategic opportunities, it was important for us to find a partner with the platform, resources, and entrepreneurial spirit to accelerate our next phase of growth. We believe this transaction achieves all of those objectives and positions our platform for long-term growth.”
Doug Bratton, Founding Partner and Chief Executive Officer of Crestline
“By joining forces with Rithm, we’re strengthening our ability to deliver differentiated alpha and deepening our commitment to serving clients with agility and excellence through market cycles.”
Managing Partner and Chief Investment Officer of Crestline Keith Williams
