Rithm Capital marks pivotal step in alts credit business

Rithm Capital has described the previous financial quarter as a “pivotal step” in the expansion of its private credit platform, following the launch of its first European collateralised loan obligation (CLO) and progress on its planned acquisition of Crestline Investors.

In the quarter, Rithm’s asset management arm, Sculptor Capital Management, grew its assets under management (AUM) to $37bn (£28.1bn), boosted by $1.4bn in gross fundraising between July and September 2025.

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The company attributed part of this growth to Sculptor’s continued activity in the CLO market, with a new issuance and reset in Europe contributing around $585m of AUM during the period.

Rithm chief executive Michael Nierenberg also pointed to the firm’s agreement to acquire Texas-based Crestline Investors, which manages approximately $18bn in assets, as a key milestone in expanding its alternative credit capabilities. Crestline’s investment strategies include direct lending, opportunistic credit, net asset value lending and insurance solutions.

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“This quarter marks a pivotal step forward in Rithm Capital’s journey, driven by strategic acquisitions, platform expansion and a disciplined investment approach, as we continue building a diversified asset management platform,” Nierenberg said. “The pending acquisition of Crestline meaningfully expands our offering into direct lending and insurance and, together with Sculptor, delivers comprehensive product solutions for investors.”

Overall, Rithm Capital reported GAAP net income of $193.7m for the third quarter, with earnings available for distribution totalling $296.9m.

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