Our Expertise –

Investment Management

Rialto Capital is the investment manager of its flagship “Rialto Real Estate Fund” series, other specialized funds, and separate accounts with different investment strategies and return targets. Since 2009, our investors have committed almost $6 billion in our flagship funds and an additional $4.5 billion across numerous private equity funds, partnerships, and separate accounts.

Our global investor base includes large institutions, pensions, sovereign funds, foundations, and individuals. We invest in commercial real estate securities, debt, and equity across both public and private markets, with a history of pivoting throughout the capital stack to what we believe are the most attractive risk-adjusted opportunities.

Our experience investing across the risk spectrum and across market cycles allows us to pursue strategies consistent with the specific objectives of our investors.

Investment Strategies

*Representative loan to value ratio. For illustrative purposes only; actual LTV can vary

Commercial Mortgage Backed Securities

We have been a market leader in new-issue CMBS B-piece acquisitions since 2011.

  • New Issue CMBS B-Pieces
  • Secondary CMBS B-Pieces
  • Investment Grade CMBS

Direct Lending on Transitional Properties

We typically manage each asset with a bespoke plan, which enables us to facilitate and manage a work out situation in-house, if required.

  • Senior Loans
  • Stretch Senior Loans
  • Mezzanine Loans
  • B-Notes
  • Preferred Equity
  • Distressed/Non-Performing Loans

Real Estate Properties

We invest in and manage across the gamut of properties types, including industrial, office, multifamily, hospitality and retail.

  • Opportunistic
  • Value Add/Repositioning
  • Distressed
Going Further –

Asset Management

Rialto Capital’s integrated asset management team relies on decades of real estate experience and uses its owner/operator skillset to create value in complex assets and portfolios.

Our dedicated team of in-house underwriters perform extensive property-level diligence on all credit and equity investments. Our asset managers, located across 13 offices throughout the United States, are assigned investments specific to their geographical areas and expertise.
Our asset management team has specialists in loan asset management, structuring, servicing, legal, and resolutions, as well as direct real estate expertise in leasing, capital improvements, repositioning, operating, property management, and development/entitlements.
Leveraging information from investments across our broad platform and applying insight gained during underwriting and asset management experiences, we seek to structure investments to limit exposure and downside.
"The Link", Denver, CO – Acquired by Rialto Capital

Special Servicing

Rialto Capital is a rated CMBS special servicer overseeing a portfolio of more than $120 billion of pool balance in over 120 trusts since 2011.

The special servicer in a CMBS transaction is responsible for the servicing and administration of all loans transferred from the master servicer to special servicing, as well as consenting to any changes to underlying collateral for non-transferred loans. Our special servicer plays a critical role on behalf of CMBS investors, striving to maximize the return of principal and interest from the underlying loans. We utilize a solutions-oriented approach to provide multi-pronged paths to success for all stakeholders.

Our special servicing team also provides an ongoing surveillance and annual re-underwriting function, allowing for continual monitoring of individual loan and collateral activity across our CMBS portfolios. This allows us to identify potential issues that may affect loan performance in the future including payment default, property performance, tenant rollover, loan covenant compliance, and market conditions.

In addition, we provide due diligence, shadow servicing, and crisis management (including in the event of natural disasters). With roots in distress, our in-house special servicer has considerable loan workout experience and value-add expertise

Disclaimer

This is not a recommendation to buy or sell specific securities, there is no assurance that the securities discussed will remain in the portfolio or that securities sold have not been repurchased, the securities discussed do not represent the entire portfolio and may only represent a small portion of the portfolio, and should not assume that the securities discussed were or will be profitable or that recommendations made in the future will be profitable.