Rithm Capital Corporation, the parent company of nationwide mortgage lender and servicer Newrez LLC, announced Thursday that it has entered into a definitive agreement to acquire Crestline Management, an alternative investment manager with $17 billion in assets under management.
The deal, expected to close in the fourth quarter of 2025, would expand Rithm’s platform into private credit, fund liquidity, insurance, and reinsurance.
With the addition of Crestline, Rithm’s combined platform — including Sculptor Capital Management — will total $98 billion in investable assets, made up of $45 billion on balance sheet and $53 billion in assets under management. Crestline, founded in 1997, will maintain its investment teams, strategies, and offices in Fort Worth, Texas; 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,” Michael Nierenberg, chairman, CEO, and president of Rithm, stated in a release. “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.”
The announcement comes on the heels of Rithm’s second-quarter earnings, where Newrez posted $16.3 billion in mortgage originations, up 38% from the prior quarter. Fueled by growth in broker and correspondent channels, executives forecast Non-QM production to double in 2025, from under $2 billion last year to $4 billion.
Newrez also reported pre-tax income of $275.1 million in Q2, excluding MSR mark-to-market and hedge effects, and a 19% pre-tax return on equity. Its servicing portfolio grew to $864 billion in unpaid principal balance, including $271 billion in third-party servicing.
For mortgage professionals, the dual developments highlight how Newrez continues to expand its Non-QM presence through wholesale and correspondent growth, while its parent Rithm strengthens its global asset management platform through acquisitions like Crestline.
