Stone Point Capital to Acquire Rialto Capital

INVESTMENT MANAGEMENT DEALS BLOG

November 2, 2018

On October 29, 2018, Lennar Corporation announced an agreement to sell Rialto Capital Management to Stone Point Capital LLC.


Under the terms of the agreement, Stone Point Capital LLC (“Stone Point”) will pay $340 million in cash at closing to Lennar Corporation (“Lennar”), the parent company of Rialto Capital Management LLC (“Rialto”). The cash to pay for Rialto will come from Stone Point’s $5.5 billion fund, Trident VII, which was launched in 2017. Rialto’s Mortgage Finance business and approximately $294 million in fund investments will be retained by Lennar. Rialto’s current management will continue to lead its Investment and Asset Management Business. Closing is expected to occur on or around November 30, 2018, subject to customary closing conditions and investor approvals.

Rialto is the asset management segment of Lennar Corporation that focuses on commercial and residential real estate investing. Lennar was advised by Deutsche Bank in the sale.

Stone Point, based in Greenwich, CT, is a private equity firm specializing in global financial services, including insurance, lending, mortgage services, asset management firms, and other financial institutions. Stone Point has approximately $19 billion of committed capital.

To read the press release: please click here.