Rithm Capital to acquire Crestline Management for expansion

NEW YORK - Rithm Capital Corp. (trading near its 52-week high at $12.35) announced it has entered into a definitive agreement to acquire Crestline Management, an alternative investment manager with approximately $17 billion in assets under management. The $6.55 billion market cap company has shown strong momentum, with revenue growing 16.59% over the last twelve months. According to InvestingPro analysis, Rithm Capital currently appears undervalued based on its Fair Value assessment.

The acquisition will expand Rithm’s capabilities across direct lending, fund liquidity solutions, insurance and reinsurance, complementing its existing focus areas in asset-based finance, real estate, structured credit, and energy infrastructure.

Following the completion of the transaction, Rithm’s combined platform, including Crestline and previously acquired Sculptor, will manage $98 billion in investable assets. This will consist of $45 billion of assets on balance sheet and approximately $53 billion in assets under management. The company maintains a healthy P/E ratio of 9.37 and offers an attractive dividend yield of 8.1%, making it one of the notable dividend-paying stocks covered in detail through InvestingPro’s comprehensive research reports.

Founded in 1997, Crestline offers private credit and alternative investment strategies and has tripled its assets under management since 2018. The firm operates from offices in Fort Worth, New York, Toronto, Tokyo and London.

According to the press release, Crestline’s investment team, committees, and strategies will remain unchanged after the acquisition closes.

"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," said Michael Nierenberg, Chief Executive Officer of Rithm.

Doug Bratton, Founding Partner and Chief Executive Officer of Crestline, stated that joining Rithm would provide "the platform, resources, and entrepreneurial spirit to accelerate our next phase of growth."

The transaction is expected to close in the fourth quarter of 2025, subject to regulatory approvals and closing conditions.

J.P. Morgan Securities LLC acted as financial advisor to Rithm, while Piper Sandler & Co. advised Crestline on the transaction.

In other recent news, Rithm Capital Corp. reported its second-quarter earnings for 2025, revealing mixed results. The company exceeded earnings per share (EPS) expectations with a reported EPS of $0.54, surpassing the forecast of $0.51. However, Rithm Capital’s revenue fell short, coming in at $925.63 million compared to the anticipated $1.21 billion. Additionally, Keefe, Bruyette & Woods raised their price target for Rithm Capital to $14.00 from $13.50, maintaining an Outperform rating. The investment firm cited an increase in book value during the second quarter as the reason for this adjustment. Furthermore, Rithm Capital resolved a legal dispute with a stockholder concerning the board’s structure. The Delaware Court of Chancery closed the case after the company and its board denied the allegations and sought dismissal. These developments highlight significant recent activities for Rithm Capital.

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