Adobe Stock
Rithm Capital Corp., a global alternative asset manager, has entered into a definitive agreement to acquire Crestline Management, L.P., a Fort Worth-based alternative investment manager with approximately $17 billion in assets under management.
In addition to diversifying its geographic footprint to largely New York-centered operations, the acquisition expands Rithm’s global asset management platform, adding capabilities across direct lending, fund liquidity solutions, insurance and reinsurance. These strategies will complement Rithm’s existing strengths in asset-based finance, real estate, structured and corporate credit, and energy and infrastructure.
With the addition of Crestline and Sculptor Capital Management — which Rithm acquired in late 2024 — Rithm’s combined platform will manage $98 billion in investable assets. That includes $45 billion of assets on balance sheet and approximately $53 billion in assets under management, according to the firm. More than 200 investment professionals will support the platform, which will provide institutional investors a wide range of strategies across asset classes.
Founded in 1997, Crestline has tripled its AUM since 2018. The firm delivers private credit and alternative investment strategies through direct lending, opportunistic credit, and fund liquidity solutions. It also manages investment strategies on behalf of its wholly owned insurance company and affiliated reinsurer.
Upon closing, Crestline’s investment team, committees, and strategies will remain unchanged, according to a press release. The firm will continue operating from offices in Fort Worth, New York, Toronto, Tokyo, and London.
“This transaction demonstrates the power of our differentiated asset management platform and our commitment to diversifying our investment strategies,” said Michael Nierenberg, CEO of Rithm, in a statement. “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.”
Piper Sandler & Co. acted as the exclusive financial adviser and Jackson Walker LLP acted as lead legal counsel to Crestline with specialist counsel at Akin, Vinson & Elkins, and Paul Hastings LLP. J.P. Morgan Securities LLC acted as the exclusive financial adviser to Rithm and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Rithm.
“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,” said Doug Bratton, Crestline’s founding partner and CEO. “We believe this transaction achieves all of those objectives and positions our platform for long-term growth.”
The transaction is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals and closing conditions.
By joining forces with Rithm, Crestline is strengthening its ability to generate returns above the market through unique strategies and insights that competitors can’t easily replicate, said Crestline Managing Partner and CIO Keith Williams, adding that the partnership also deepens “our commitment to serving clients with agility and excellence through market cycles.”