Rialto Capital Management, LLC (collectively with its subsidiaries as described herein, “Rialto” or
the “Adviser”), a Delaware limited liability company, was formed in 2007 and operates as an
integrated investment and asset management business with professionals operating from offices
throughout the United States and Europe. In 2018, Rialto and its parent company were acquired by
various funds managed by Stone Point Capital LLC (the “Stone Point Group” or “Stone Point”) and
certain Rialto employees. Rialto is led by Jeffrey Krasnoff, Chief Executive Officer, and Jay Mantz,
President.
Rialto Capital Management, LLC registered with the SEC as an investment adviser in 2012.
Together with its affiliates, Rialto Partners GP, LLC, Rialto Partners GP II, LLC, RPCF GP, LLC,
Rialto Partners GP III - Debt, LLC, Rialto Partners GP III - Property, LLC, Rialto Partners GP IV
– Debt, LP, Rialto Partners GP IV – Property, LP, Rialto Credit Partnership GP, LLC, Rialto
Partners GP RVCF, LLC, Rialto Partners GP Yamato, LP, Rialto Credit Opportunities GP, LP,
Rialto Partners GP RREF I SPV, LP, Rialto Partners GP RREF II SPV, LP, Rialto Partners RCP II,
GP, LLC, Rialto Partners GP V – Property, LP and Rialto Partners GP V – Debt, LP (“General
Partner(s)”), Rialto provides investment advice to unregistered pooled investment vehicles (each a
“Fund” and together the “Funds”) and separately managed accounts and also sub-advises a
registered real estate investment trust (collectively with the Funds, its “Clients”). Unless the context
otherwise requires, the General Partners are included in the term “Rialto.” Any persons acting on
behalf of the General Partners are subject to the supervision and control of Rialto in connection with
any investment advisory activities. While Rialto is the managing member or, as applicable, general
partner, controlling the General Partners, Lennar Corporation, Rialto’s former parent company prior
to November 30, 2018, retained a material economic interest in certain General Partners, and Stone
Point holds a material economic interest in the General Partners formed after
December 1, 2018.
Clients invest primarily in commercial real estate properties, commercial real estate loans and real
estate related securities located in the U.S. The Funds rely primarily on exemptions from
registration under Section 3(c)(7) of the Investment Company Act of 1940, as amended (the
“Investment Company Act”). Interests in the Funds also are not registered under the Securities Act
of 1933 (“Securities Act”) in reliance on exemptions provided by Section 4(a)(2) of the Securities
Act of 1933 and Regulation D promulgated thereunder.
Rialto provides investment advice directly to the Funds and not individually to their limited partners
or other investors. Rialto manages each Fund’s assets in accordance with the objectives and strategy
as defined in each Fund’s private placement memorandum and/or limited partnership agreement or
other operating agreement (“Governing Fund Documents”). All terms are generally established at
the time of a Fund’s formation and investors may not restrict the Fund’s investments except as
indicated in the Governing Fund Documents.
Additionally, Rialto provides investment advice to its other Clients in accordance with the
objectives and strategy as defined in each Client’s investment management agreement or sub-
advisory agreement (the “Management Agreements” and, together with the Governing Fund
Documents, the “Governing Documents”). Rialto provides discretionary advice to its Clients, but
it does have certain separately managed account Clients to which it provides non-discretionary
advice. The Adviser tailors its advisory services to the particular needs of each Client. However,
the specific needs of the individual investors in a Client organized as a pooled investment vehicle
(i.e., limited partner investors) are not the basis for the recommendations by the Adviser. Investment
advice is provided directly to the Client, not individually to the respective investors in the Client.
As of December 31, 2023, Rialto managed approximately $7,493 million on a discretionary basis
and approximately $9,512 million on a non-discretionary basis.