Miami-based Lennar announced in late October that it agreed to sell its investment management business, Rialto Investment and Asset Management, to private equity firm Stone Point Capital for $340 million. Lennar will retain the Rialto Mortgage Finance business and likely integrate it into its Financial Services business at the beginning of fiscal year 2019, the company said in a statement.
Lennar will retain some legacy assets in Rialto, including $294 million in fund investments as of Aug. 31 and carried interests in various funds.
The transaction was scheduled to close on Nov. 30, 2018, or as soon after that as the conditions to the transaction are fulfilled. The transaction is subject to consent by the funds managed by Rialto or the investors in those funds and customary closing conditions.
Stone Point is based in Greenwich, Connecticut. The firm is expected to retain Rialto’s current management, according to a statement by Lennar.