Rithm Capital buys Crestline Management
Alternative asset manager Rithm Capital has agreed to acquire Crestline Management, an alternative asset manager with $17bn (£12.6bn) in assets under management (AUM), for an undisclosed sum.
Crestline is a fully-integrated platform offering private credit and alternative investment strategies across direct lending, opportunistic credit, and fund liquidity solutions. It also manages a reinsurance strategy with liabilities primarily funded by its wholly owned insurance provider.
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Following the acquisition, Rithm’s combined platform will comprise $98bn in investable assets, including $53bn in AUM, and will offer institutional investors a range of strategies across asset classes and return profiles. Rithm said the acquisition also expands its capabilities across direct lending, fund liquidity solutions, insurance and reinsurance.
Upon closing of the transaction, Crestline’s investment team, committees, and strategies will remain unchanged, and the firm will maintain its existing offices in Fort Worth, New York, Toronto, Tokyo and London.
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“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,” said Doug Bratton, chief executive of Crestline.
“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.”
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“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,” added Michael Nierenberg, chief executive of Rithm.
“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.”
