Rialto Capital Management

What Rialto Capital Management does

Rialto Capital Management is a Miami-based, privately held institutional real estate investment manager that operates a vertically integrated platform spanning investment management, asset management, and CMBS special servicing. Founded in 2007 by Jeff Krasnoff (who previously led the predecessor LNR franchise within Lennar Corporation since 1990), the firm was acquired in 2018 by funds managed by Stone Point Capital in partnership with the management team. Rialto serves institutional investors — pensions, sovereign wealth funds, foundations, endowments, family offices, and increasingly insurance balance sheets — through its flagship Rialto Real Estate Fund (RREF) series, a Direct Lending Platform established in 2013, a sub-advisory role on FS Credit REIT (since 2017), and joint ventures including Hines-Rialto Credit Partners.

The platform invests across the commercial real estate capital structure, including CMBS B-pieces, senior and mezzanine loans, B-notes, preferred equity, and direct property equity across industrial, office, multifamily, hospitality, and retail asset classes. Its separately licensed special servicer (Rialto Capital Advisors) oversees a CMBS portfolio exceeding $90 billion in remaining pool balance, providing workout, surveillance, and asset management capabilities that feed both the servicing franchise and investment underwriting. The firm has raised six flagship funds since 2010 totaling approximately $6 billion in commitments, plus an additional $5 billion across co-investments, partnerships, and separate accounts, and operates from 12 US offices plus Madrid with a team of more than 300 professionals.

Revenue is generated through management fees on committed and invested capital across fund vehicles and separate accounts, special servicer fees on the $90B+ CMBS portfolio, and performance-related fees on investment outcomes. Distribution is institutional and relationship-driven: Rialto relies on direct engagement with institutional LPs through dedicated capital formation and client & product solutions teams, supported by referrals from existing institutional relationships. Pricing is privately negotiated and not publicly disclosed. The firm is led by CEO Jeff Krasnoff, President Jay Mantz (former Morgan Stanley Global Head of Merchant Banking), and a broader team of 80+ Managing Directors and Directors covering credit, property, special servicing, capital formation, technology, finance, and compliance functions.

Name

Rialto Capital Management

Legal name

Rialto Management Group, LLC

Website

https://rialtocapital.com

Company type

Private

Founded year

2007

Operating status

Operating

Headcount range

251–500 employees

Short description

Rialto Capital Management is a Miami-based, Stone Point Capital-owned institutional real estate investment manager operating a vertically integrated platform spanning investment management, asset management, and CMBS special servicing, serving pension funds, sovereign wealth funds, foundations, family offices, and insurance balance sheets with $6B+ in flagship fund AUM and a $90B+ special servicer portfolio.

Ownership category

akta.pro rank

Product category

Commercial Real Estate Investment Management

NAICS

Portfolio Management and Investment Advice (523940), Real Estate Property Managers (53131), All Other Financial Investment Activities (52399)

SIC

Investment Advice (6282), Real Estate Agents & Managers (For Others) (6531), Asset-Backed Securities (6189)

akta.pro primary industry

Real Estate Portfolio & Fund Management (Institutional/REIT/PE) (BPAJAMAJ)

akta.pro secondary industries

Commercial Real Estate Asset Management (BPAJAMAB), Portfolio Management–Led RIAs (Discretionary/Model-Based) (FSAAACAC), Real Estate Capital Markets Advisory (Debt/Equity Placement, Refinancing) (BPAJANAE)

Keywords

• Commercial real estate investment
• Real estate asset management
• CMBS special servicing
• Real estate debt equity
• Institutional fund management

Headquarters

HQ city

Miami

HQ country

United States

HQ region

North America

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

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

Revenue model

1. Investment Management Fees: Fees charged for managing investment funds and portfolios across real estate debt and equity investments.
2. Asset Management Fees: Ongoing fees for asset management services provided to investors and portfolio companies.
3. Special Servicer Fees: Fees generated from special servicing operations on commercial real estate loan portfolios.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Rialto Capital Management operates as an integrated real estate investment and asset management platform that invests in real estate properties, loans, and securities across the capital structure through its flagship Rialto Real Estate Fund (RREF) series, specialized funds, and separate accounts. The firm manages over $6 billion in assets under management and nearly $3 billion in equity, while its dedicated special servicer oversees more than $90 billion in remaining CMBS pool balance. Its three core business lines are Investment Management, Asset Management, and Special Servicing.

Product overview

Rialto Capital Management is an integrated real estate investment and asset management platform with a dedicated commercial mortgage special servicer. The company operates as a single unified platform with three core business lines: Investment Management (managing flagship Rialto Real Estate Fund series, specialized funds, and separate accounts), Asset Management (managing investments throughout the real estate capital structure), and Special Servicing (rated CMBS special servicer with $90+ billion in remaining pool balance). The product portfolio includes multiple fund vehicles: RREF I through V-Debt (launched 2010-2023), Direct Lending Platform (established 2013), and FS Credit REIT (2017). Investment strategies encompass Commercial Mortgage Backed Securities (CMBS B-pieces, investment grade), Direct Lending (senior loans, mezzanine, B-notes, preferred equity, distressed loans), and Real Estate Properties (opportunistic, value add, distressed) across all property types including industrial, office, multifamily, hospitality, and retail. The platform also includes the Hines-Rialto Credit Partners joint venture. The company manages over $6 billion in assets under management and nearly $3 billion in equity, with operations spanning the United States and Europe.

Differentiator

Problem solved

Functional benefit

Products and services

• Investment Management Services Acts as investment manager for the flagship Rialto Real Estate Fund (RREF) series, specialized funds, and separate accounts across real estate debt and equity strategies, managing nearly $6 billion in flagship fund commitments and approximately $5 billion across private equity funds, partnerships, and separate accounts since 2009.
• Asset Management Services Integrated asset management services across the real estate capital structure, including in-house underwriting, loan asset management, structuring, servicing, legal, resolutions, leasing, capital improvements, repositioning, operating, property management, and development/entitlements.
• Special Servicing Services Rated CMBS special servicer overseeing a portfolio of more than $90 billion in remaining pool balance, responsible for servicing and administration of loans transferred from master servicer, consenting to collateral changes for non-transferred loans, surveillance, annual re-underwriting, due diligence, shadow servicing, and crisis management.
• Rialto Real Estate Fund I (RREF I) First flagship fund launched in 2010 with $700 million in investor commitments, focusing on portfolios of distressed real estate loans/assets and B-pieces of newly issued commercial mortgage backed securities.
• Rialto Real Estate Fund II (RREF II) Flagship fund launched in 2012 with $1.3 billion in investor commitments focusing on CMBS B-pieces, direct real estate acquisitions, distressed portfolios of real estate loans/assets, and direct lending opportunities.
• Rialto Real Estate Fund III (RREF III) Dual vehicle flagship fund series launched in 2015 as RREF III-Debt and RREF III-Property, totaling $1.9 billion in investor commitments for opportunistic credit and property investments.
• Rialto Real Estate Fund IV (RREF IV) Dual vehicle flagship fund series launched in 2019-2020, comprising RREF IV-Debt with $1.9 billion in investor commitments for credit investments and RREF IV-Property with over $700 million for direct real estate acquisitions.
• Rialto Real Estate Fund V - Debt (RREF V-Debt) Flagship debt-focused fund launched in 2023 with $2.6 billion in investor commitments to continue credit investment strategies.
• FS Credit REIT Credit REIT launched in 2017 with Rialto Capital as sub-advisor, focusing on originating senior floating rate loans, subordinate real estate loans, and certain commercial mortgage backed securities.
• Direct Lending Platform Direct lending platform established in 2013 and capitalized with over $920 million from 2013-2017, focused on acquiring and originating senior floating rate loans, subordinate real estate loans, and B-notes.
• Hines-Rialto Credit Partners, LP Joint venture fund with Hines targeting credit investments in commercial real estate, with a dedicated investor portal at investors.hines-rialto.com.

Quantifiable outcome

• Managing $6B+ in total assets and nearly $3B in equity
• +1 more outcomes

Named customers2 records

Segments2 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered core and minor.

• HinescoreStrategic or Co-development PartnerCo-investment partnership targeting Hilson's Midtown offices for foreclosure. Hines is a global real estate firm, and this partnership involves joint acquisition and asset management activities.
• DLC ManagementminorStrategic or Co-development PartnerDLC Management and Rialto Capital jointly listed Randhurst Village retail property for sale. DLC is a retail real estate company, and this represents a co-investment and disposition partnership.

Scale indicators5 records

Recent moves11 records

Expansion highlights5 records

Direct peers

• Starwood Capital Group: Globally diversified real estate-focused investment manager with debt, equity, and special situations strategies. Comparable to Rialto in opportunistic CRE investing, distressed debt acquisition, and CMBS B-piece buying, though significantly larger in AUM.
• Oaktree Capital Management: Premier alternative investment manager with deep distressed debt and real estate franchises. Closely comparable to Rialto in opportunistic/distressed CRE debt strategies, special situations investing, and CMBS B-piece acquisitions.
• Cerberus Capital Management: Alternative investment manager with significant real estate and distressed debt operations; took predecessor LNR private in 2005 for $4.2B. Direct peer in distressed CRE workout, special servicing, and opportunistic real estate investing.
• Angelo Gordon (TPG Angelo Gordon): Alternative asset manager with strong real estate credit, net lease, and opportunistic equity strategies. Comparable to Rialto in CRE debt origination, CMBS, and special situations investing; acquired by TPG in 2023.
• CWCapital Asset Management: Specialized CMBS special servicer and CRE asset manager. Highly comparable to Rialto's special servicing business line ($90B+ portfolio) with similar loan workout, REO management, and CREFC reporting capabilities.
• Trimont Real Estate Advisors: Global CRE services firm specializing in loan servicing, special servicing, and asset management. Direct peer to Rialto in CMBS special servicing, surveillance, and REO disposition activities.

Broad incumbents

• Brookfield Asset Management: One of the largest global alternative asset managers with a major real estate platform spanning debt, equity, and opportunistic strategies. Overlaps with Rialto's investment management and asset management lines but at vastly greater scale and broader strategy mix.
• Blackstone Real Estate: Largest global real estate platform with BREIT, BREDS, and core-plus/opportunistic strategies. Direct competitor for institutional capital allocations and a current Rialto JV partner (with CPPIB), making it both a peer and a counterparty.
• KKR Real Estate: Global alternative manager with growing CRE debt and equity franchises. Competes with Rialto for institutional real estate allocations and direct lending mandates, with broader product breadth and larger fund vehicles.

Emerging players

• Greystone & Co. CRE-focused investment manager with debt, equity, and servicing capabilities. Comparable to Rialto in CRE lending and asset management though smaller and more concentrated in multifamily and healthcare.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/rialto-capital-management
• Xx.com/rialtocapital

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Subsidiaries3 records

Funding overview

Funding rounds1 record

Investors1 record

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

M&A

Investments4 records

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

Frequently asked questions about Rialto Capital Management