What Waterfall Asset Management does

Waterfall Asset Management is a privately held, New York-headquartered institutional asset manager founded in 2005 by Tom Capasse and Jack Ross, both formerly of Merrill Lynch's ABS Group. The firm specializes in asset-backed finance, sourcing complex and differentiated investments across more than 60 sectors of the structured credit, whole loan, and related markets globally. Its product platform spans the flagship high-yield asset-backed credit strategy (launched 2005), loan strategies covering performing and non-performing loans (2007), the publicly traded Ready Capital commercial mortgage REIT (NYSE: RC, seeded 2013), the Waterfall Sentinel private equity strategy focused on lower middle-market financial services (2017), the Atlas Fund CRE equity strategy (closed at $485M in 2023), a CUSIP dislocation fund, and the Private Asset-Backed Credit Fund (launched 2025 with $252M+ in LP commitments). The firm operates a proprietary technology-enabled vendor oversight system called WAMCAM, which holds government licenses and enables operations across more than 20 loan sectors globally. Waterfall also maintains offices in London (opened 2016) and Dublin, supported by multi-jurisdictional regulatory registrations (SEC, FCA, Irish Central Bank-equivalent).

Waterfall generates revenue through two primary streams: recurring asset management fees charged on assets under management across its fund strategies, and performance fees / carried interest on flagship and newer strategies. As of March 2026, the firm manages approximately $12.1 billion in AUM and employs roughly 150 professionals, with approximately 90% of its client base consisting of institutional investors — public and corporate pensions, endowments, foundations, sovereign wealth funds, insurance companies, and family offices. Distribution is conducted almost exclusively through direct institutional relationship management by senior team members and co-heads of business development, supported by evergreen and drawdown fund structures that accommodate both commingled and single-investor mandates. The firm also originates and services loans through partnerships and direct transactions, including a £700 million forward flow agreement with Funding Circle (announced February 2026) and direct lending positions such as the $127 million Chesterbrook Office Campus refinancing (March 2026) and a $19.5 million Greenwich Village retail loan (March 2026).

Name

Waterfall Asset Management

Legal name

Waterfall Asset Management, LLC

Website

https://waterfallam.com

Company type

Private

Founded year

2005

Operating status

Operating

Headcount range

101–250 employees

Short description

Waterfall Asset Management is a privately held, New York-based institutional asset manager founded in 2005 that invests across 60+ sectors of structured credit, whole loans, and commercial real estate, managing $12.1B in AUM primarily for pensions, endowments, sovereign wealth funds, and insurance companies.

Ownership category

akta.pro rank

Product category

Institutional Asset Management - Structured Credit and Asset-Backed Finance

NAICS

Portfolio Management and Investment Advice (523940), Funds, Trusts, and Other Financial Vehicles (525), Other Investment Pools and Funds (5259)

SIC

Asset-Backed Securities (6189), Investment Advice (6282)

akta.pro primary industry

Multi-Strategy — Credit + Structured Products (FSAHAFAE)

akta.pro secondary industries

Debt Buying & Portfolio Acquisition (Charged-Off Receivables) (FSAKAJAC), Real Estate Portfolio & Fund Management (Institutional/REIT/PE) (BPAJAMAJ)

Keywords

• Structured credit investing
• Asset-backed securities
• Commercial mortgage REIT
• Whole loan strategies
• Institutional asset management

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Asset Management Fees: Management fees charged on assets under management across the firm's various fund strategies including asset-backed credit strategies, loan strategies, and REIT investments. Waterfall manages $12.1B AUM as of March 2026.
2. Performance Fees / Carried Interest: Performance-based compensation from fund strategies including the flagship asset-backed credit strategy launched in 2005, loan strategy launched in 2007, and newer strategies like the Atlas Fund and CUSIP dislocation fund.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Waterfall Asset Management is an institutional asset manager that sources complex and differentiated investments in specialized corners of the asset-backed finance markets, with a focus on structured credit securities, whole loans, and related strategies. The firm operates multiple fund vehicles — including its flagship Asset-Backed Credit Strategies (since 2005), Loan Strategies (since 2007), the Ready Capital commercial mortgage REIT, the Waterfall Sentinel private equity strategy, the Atlas CRE equity fund, and the 2025-vintage Private Asset-Backed Credit Fund — distributed primarily to institutional investors via evergreen and drawdown structures.

Product overview

Waterfall Asset Management operates as an institutional asset manager focused on structured credit (asset-backed securities and loans) and private equity investments. The firm's platform encompasses multiple distinct investment strategies and products: the flagship Asset-Backed Credit Strategies (launched 2005) targeting ABS markets across 60+ sectors; the Loan Strategies (launched 2007) investing in performing and non-performing loans using the proprietary WAMCAM technology system; the Ready Capital REIT (NYSE: RC, seeded 2013) serving as the lead permanent capital vehicle and the 4th largest commercial mortgage REIT; the Private Equity Strategy via the Waterfall Sentinel Fund (launched 2017) targeting lower middle-market financial services; the Atlas Fund (2022) for CRE equity; the CUSIP Dislocation Fund Strategy (2022); and the Private Asset-Backed Credit Fund (2025). Waterfall utilizes commingled and drawdown fund structures for commingled and single investor preferences, with strategies spanning publicly traded and privately negotiated markets globally (U.S., Europe, and Asia).

Differentiator

Problem solved

Functional benefit

Products and services

• Asset-Backed Credit Strategies Flagship high-yield strategy seeking relative value across asset-backed securitizations including residential real estate, commercial real estate, consumer loans, CLOs, small business, and esoteric sectors. Generates alpha through credit-driven insights, sourcing new-issue securitizations, secondary trades, and bespoke private transactions for institutional investors.
• Loan Strategies Strategy seeking strong absolute returns through investments in performing and non-performing loans with emphasis on real estate secured assets. Targets secondary (often distressed) and primary (direct lending via conduit programs) markets in loan sectors where credit or regulatory complexity limits competition, supported by Waterfall's proprietary WAMCAM vendor oversight system enabling pivot across 20+ loan sectors globally.
• Ready Capital REIT (NYSE: RC) Commercial mortgage REIT seeded by Waterfall in 2013 and trading on NYSE (Ticker: RC). The 4th largest commercial mortgage REIT by equity with leading market share in U.S. lower-middle market CRE transitional lending and the largest non-bank / 4th largest SBA 7(a) lender by approvals, providing proprietary deal flow for Waterfall's CRE platform.
• Private Equity Strategy (Waterfall Sentinel Fund) Private equity strategy focused on lower middle-market financial services, executed via the Waterfall Sentinel Fund. Has made multiple platform investments (e.g., Newcleus in insurance and financial services) supporting growth and expansion of portfolio companies in the financial services sector.
• Atlas Fund Commercial real estate equity strategy launched in 2022 and closed at $485 million in April 2023, representing Waterfall's CRE equity platform alongside the firm's CRE debt strategies.
• CUSIP Dislocation Fund Strategy Strategy launched in 2022 targeting CUSIP dislocation opportunities in structured credit markets, seeking to capture relative value from pricing dislocations across CUSIPs in the firm's coverage universe.
• Private Asset-Backed Credit Fund Fund launched in 2025 with over $252M in LP commitments, focusing on private asset-backed credit investments where structural protections drive resilient performance for institutional limited partners.

Quantifiable outcome

• Waterfall has channeled over £3 billion in loans through Funding Circle's platform since 2018
• +3 more outcomes

Named customers5 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Three partnerships are on record, tiered core, flagship and minor.

• British Business BankcoreStrategic or Co-development Partner · 18 June 2026British Business Bank participated for the first time in a Funding Circle public securitization (SBOLT 2026-1), marking its initial collaboration with the platform on this transaction type. The securitization brought Funding Circle's total issuance to approximately £2.5 billion.
• Funding CircleflagshipStrategic or Co-development Partner · 12 February 2026Expanded partnership with £700 million forward flow agreement over two years, including senior financing from Citi and purchase of existing loan portfolio worth approximately £120 million. Partnership began in 2018 and has channeled over £3 billion in loans to UK SMEs. This represents Waterfall's strategic shift from balance sheet to institutional funding for SME lending.
• FundboxminorStrategic or Co-development Partner · 1 December 2025Fundbox partnered with Waterfall Asset Management as part of its growth strategy in 2025. Waterfall is one of several partnerships Fundbox uses to fuel growth, expanding lending volume through data-driven digital underwriting to underserved small businesses.

Scale indicators8 records

Recent moves10 records

Expansion highlights5 records

Direct peers

• BlueMountain Capital Management: Structured credit-focused hedge fund manager specializing in asset-backed securities, CLOs, and structured products. Highly comparable to Waterfall's core asset-backed credit strategy with similar institutional client focus.
• Silver Point Capital: Credit-focused alternatives manager investing in leveraged loans, structured credit, distressed debt, and special situations. Comparable to Waterfall's loan and structured credit strategies with similar institutional LP base.
• Diameter Capital Partners: Specialist credit manager founded by ex-Fortress principals focused on structured credit, CLOs, and asset-backed investments. Closely comparable specialty credit focus and institutional distribution model.
• Napier Park Global Capital: Alternative credit manager specializing in asset-backed finance, CLOs, and structured products. Directly comparable to Waterfall's asset-backed credit and structured finance strategies with similar institutional client mix.
• Marathon Asset Management: Credit-focused alternatives firm with strategies spanning leveraged loans, structured credit, distressed debt, and asset-based finance. Comparable multi-strategy credit platform serving institutional investors.
• Garrison Investment Group: Specialty credit and asset-based lending manager with strategies in structured credit, ABS, and specialty finance. Comparable specialty credit focus, with several Waterfall employees having prior Garrison experience.
• EJF Capital: Alternative asset manager focused on ABS, structured credit, and financial services-related investments. Comparable specialty credit platform with similar institutional client orientation and financial services sector focus.

Broad incumbents

• Ares Management: Large alternative asset manager with massive credit franchise ($200B+ in credit AUM). Overlaps with Waterfall in asset-based finance, CRE debt, and direct lending but operates at vastly greater scale and breadth.
• Oaktree Capital Management: Major alternatives manager specializing in credit, distressed debt, and structured finance strategies. Overlaps with Waterfall in structured credit and loan strategies but serves a much broader institutional client base.
• Apollo Global Management: Global alternatives giant with significant structured credit, CRE lending, and asset-based finance businesses. Comparable to Waterfall in structured credit and CRE debt but at dramatically greater scale.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/waterfall-asset-management-llc
• Instagramwaterfallam.com/contact-us

Revenue estimate

Valuation estimate

Number of profiles

Profiles15 records

Subsidiaries4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments38 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Waterfall Asset Management