The company will retain a related mortgage finance operation
Lennar has agreed to sell its Rialto Investment and Asset Management business to investment funds managed by Stone Point Capital for $340 million.
Following the sale, the business will continue to be led by its current management.
The transaction is scheduled to close on Nov. 30, 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.
Lennar will retain its fund investments, which totaled $294 million as of Aug. 31, along with its carried interests in various Rialto funds, as well as investments in other legacy Rialto balance sheet assets.
The company said it will also retain its Rialto Mortgage Finance business. Lennar expects that it will the business into its financial services business at the beginning of fiscal 2019.