Rithm Capital Corp., parent company of multichannel lender Newrez, has struck a deal to acquire alternative investment manager Crestline Management, a move that adds $17 billion in assets under management and expands its reach into direct lending, fund liquidity solutions, insurance and reinsurance.  

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. 

The companies expect the transaction to close in the fourth quarter of 2025, subject to customary regulatory approvals and closing conditions.

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 clients—and a combined team of 200 investment professionals. 

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 was advised by J.P. Morgan Securities LLC, while Piper Sandler & Co. advised Crestline.

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