Investment and Asset Management

Rialto and Lennar together have innovated and created overall value for our investors and partners during the current investment cycle. And we are only beginning...

From developing market-leading transactions, to applying rigorous financial disciplines and controls, to conducting comprehensive due diligence, Rialto has the resources and capabilities to deliver multiple services under one umbrella.

Investment Management

Asset Management

  • Proven ability to identify illiquid market segments and be a price maker
  • Rialto and Lennar together have an extensive track record in multiple cycles going back over 50 years
  • Acquired over $6 billion in distressed loans and properties in this cycle
  • Longstanding relationships with institutions across the spectrum and markets enable frequent access to off-market opportunities
  • Established, trusted partnerships with institutional and high net worth investors, the FDIC, U.S. Department of the Treasury; all provide access and opportunity
  • As an operating segment of a public company (Lennar), Rialto has access to real-time information regarding market conditions over a wide footprint
  • A pioneer in CMBS since the market's inception, Rialto's management team has a long history of evaluating, purchasing and managing CMBS. Rialto's founder is one of the first investors and innovators in this asset class
  • Decades of experience and knowledge of CMBS transactions, coupled with rigorous systems, controls procedures as well as reporting, provide significant benefits in evaluating new investments
  • Dedicated CMBS team maintains surveillance of securities and has already underwritten and evaluated billions of dollars of legacy securities
  • Leader in CMBS 2.0, one of the largest market participants in B-Piece arena
  • Extensive property-level diligence performed: site visits of assets, market / channel checks performed
  • Initial conclusions are validated – new issues are flagged
  • Ability to negotiate alpha into pricing based on more robust analysis
  • Internal processes ensure that final pricing reflects all known risks and Investment Committee approval is secured
  • Majority of transactions have been done on a negotiated basis – provides for better collateral pricing
  • Limited competition leads to favorable pricing power when dealing with repeat counterparts
  • Rialto's policy of transparency with issuers has resulted in deeply established relationships and off-market pricing
  • Detailed underwriting of every asset / relationship
  • Leverage vast network of primary sources and database of previous underwritings – incorporate real-time feedback from our team in the field including Lennar personnel as appropriate
  • Ability to identify best risk adjusted returns through competitive dynamics and focus on transactions with the abilities to be price maker
  • Round table process at multiple points in the process – thorough review of every underwriting ensures consistency
  • Asset by asset business plans and Investment Committee approval
  • Dedicated asset management team across U.S. – loan workout specialists assigned based on expertise / tenure
  • Standard approach provides for value maximization – Rialto not encumbered by limitations imposed by need for relationship / capital preservation
  • Results measured on individual basis – expectations based on facts / circumstances, not purchase price
  • Expertise in value-add workout strategies and management
  • Dedicated team and call center focused solely on small balance program (under $1 million UPB)
  • Ability to seamlessly board hundreds of loans in a single transaction and establish relationships with borrowers promptly upon acquisition
  • Unique expertise to respond to changing dynamics as small balance portfolios season
  • Rigorous internal processes and proven resolution techniques to maximize internal rate of return and obtain the highest possible recovery
  • Local market presence in major asset concentrations
  • Real Estate Group pursues all forms of value-add strategies: entitlement, capex, leasing, sale timing
  • Extensive network of local market insight from brokers, operators, and potential buyers
  • Ability to leverage Lennar's 8,000+ Associates
  • Detailed review and analysis of guarantor situation based on publicly available information and face-to-face interaction
  • Ascertainment of and capitalization upon points of leverage through negotiations increase actual collections and improve terms of modifications