Rithm Capital Corp. is making another bold move in the world of asset management, announcing Thursday it will acquire Crestline Management, a private markets heavyweight with $17 billion under management. The deal, advised by a roster of powerhouse law firms, will dramatically expand Rithm’s reach into private credit, insurance, and reinsurance.

Legal Heavyweights Behind the Transaction

Five firms guided the transaction: Skadden Arps Slate Meagher & Flom LLP, Akin Gump Strauss Hauer & Feld LLP, Vinson & Elkins LLP, and Paul Hastings LLP. Terms of the deal remain undisclosed, but the acquisition marks one of the most significant milestones in Rithm’s transformation from its 2013 beginnings as a mortgage servicing rights manager into a diversified investment giant.

A Platform Supercharged to $98 Billion

With the addition of Crestline, Rithm’s platform will soar to $98 billion in investable assets, including $45 billion on balance sheet and another $53 billion in managed assets. The deal is expected to close in the fourth quarter of 2025.

“This transaction demonstrates the power of our differentiated asset management platform and our commitment to diversifying our investment strategies,” said Rithm CEO Michael Nierenberg. “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.”

Crestline’s Next Phase

Crestline CEO Doug Bratton said his firm saw Rithm as the ideal partner to provide “the platform, resources and entrepreneurial spirit to accelerate our next phase of growth.”

The deal follows Rithm’s $720 million acquisition of Sculptor Capital Management, finalized in November 2023 after Sculptor settled a shareholder class action. That purchase gave Rithm another lever in the competitive asset management arena, but the Crestline buy pushes the company into new strategic territory.

The Dealmakers

Rithm’s legal team includes Peter Serating, Blair Thetford, Heather Cruz, Nickolas Gianou, and Joseph Penko of Skadden Arps Slate Meagher & Flom LLP. Crestline tapped Akin Gump Strauss Hauer & Feld LLP, Vinson & Elkins LLP, and Paul Hastings LLP for counsel.