View source for Company:Rithm Capital

{{Short description|American investment management company}}
{{Infobox company
| name = Rithm Capital Corp.
| logo = Rithm Capital.svg
| logo_size = 
| logo_alt = 
| logo_caption = 
| image = 799 Broadway (51877415186).jpg
| image_size = 
| image_alt = 
| image_caption = Headquarters at 799 Broadway
| native_name = 
| native_name_lang = 
| romanized_name = 
| former_name = New Residential Investment Corp.
| type = [[Finance:Public company|Public company]]
| traded_as = {{ubl|{{NYSE|RITM}} |Russell 1000 component}}
| ISIN = 
| industry = [[Finance:Financial services|Financial services]]
| genre = 
| fate = 
| predecessor = <!-- or: | predecessors = -->
| successor = <!-- or: | successors = -->
| founded = {{start date and age|2013}}
| founders = 
| defunct = <!-- {{End date|YYYY|MM|DD}} -->
| hq_location = 799 Broadway
| hq_location_city = New York City
| hq_location_country = United States
| num_locations = 
| num_locations_year = <!-- Year of num_locations data (if known) -->
| area_served = 
| key_people = Michael Nierenberg (Chairman & CEO)
| products = Real estate<br>[[Finance:Alternative investment|Alternative investment]]s
| brands = 
| production = 
| production_year = <!-- Year of production data (if known) -->
| services = 
| revenue = {{increase}} US$4.73&nbsp;billion (FY 2022)
| operating_income = 
| net_income = {{increase}} US$983.29&nbsp;million (FY 2022)
| aum = 
| assets = {{decrease}} US$32.48&nbsp;billion (FY 2022)
| equity = {{increase}} US$7.01&nbsp;billion (FY 2022)
| owner = <!-- or: | owners = -->
| members = 
| members_year = <!-- Year of members data (if known) -->
| num_employees = {{increase}} 5,763 (FY 2022)
| parent = 
| divisions = 
| subsid = [[Company:Sculptor Capital Management|Sculptor Capital Management]]
| module = <!-- Used to embed other templates -->
| website = {{URL|www.rithmcap.com}}
| footnotes =<ref name="22AR">{{cite web |title=2022 Annual Report |url=https://ir.rithmcap.com/files/doc_financials/2022/ar/rithm_2022ar_final.pdf |website=Rithm}}</ref>
}}

'''Rithm Capital''' (Rithm)  is an American investment management company headquartered in {{wipe|New York City}} that focuses on real estate and [[Finance:Alternative investment|alternative investment]]s. 

== Background ==
On May 16, 2013, Newcastle Investment Corp, a real estate investment trust (REIT) under Fortress Investment Group [[Finance:Corporate spin-off|spunoff]] its residential mortgage related assets into a new REIT named New Residential Investment Corp. New Residential was listed on the New York Stock Exchange under the ticker 'NRZ' and would focus on investments related to mortgage servicing rights (MSR). There was a management agreement between New Residential and Fortress which stated Fortress would act as New Residential's manager and ws entitled to 25% of the funds from operations as well as any profits from the sale of assets.<ref name="22AR" /><ref>{{Cite web |last=Plaehn |first=Tim |date=June 4, 2013 |title=Spin-Off REIT New Residential Investment Hits The Mortgage Sector From A Different Angle (NYSE:RITM) {{!}} Seeking Alpha |url=https://seekingalpha.com/article/1480431-spin-off-reit-new-residential-investment-hits-the-mortgage-sector-from-a-different-angle |access-date=December 31, 2023 |website=seekingalpha.com |language=en}}</ref> In September 2013, Fortress hired Michael Nierenberg, [[Company:Bank of America|Bank of America]]'s head of global mortgages and securitized products to run New Residential.<ref>{{Cite news |date=September 12, 2013 |title=Fortress Said to Hire BofA's Mortgage Chief Nierenberg |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2013-09-12/fortress-said-to-hire-bofa-s-mortgage-chief-nierenberg |access-date=December 31, 2023}}</ref>

In February 2015, New Residential acquired Home Loan Servicing Solutions for $1.3&nbsp;billion.<ref>{{Cite news |last=Chen |first=Angela |date=February 23, 2015 |title=New Residential to Buy Home Loan Servicing Solutions for $1.3 Billion |language=en-US |work=Wall Street Journal |url=http://www.wsj.com/articles/new-residential-to-buy-home-loan-servicing-solutions-for-1-3-billion-1424692915 |access-date=December 31, 2023 |issn=0099-9660}}</ref>

In January 2017, [[Company:Citigroup|Citigroup]] sold $97&nbsp;billion worth of MSRs to New Residential for $950&nbsp;million as part of its plan to exit the mortgage servicing business.<ref>{{Cite news |date=January 30, 2017 |title=Citi to Exit Mortgage Servicing, Sell $97 Billion Portfolio |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2017-01-30/citigroup-plans-to-exit-mortgage-servicing-by-end-of-next-year |access-date=December 31, 2023}}</ref> In February, New Residential joined a consortium that included [[Company:Jefferies Group|Jefferies]], Third Point Management and Soros Fund Management to acquired $5&nbsp;billion worth of unsecured forward flow consumer loans from Prosper Marketplace.<ref>{{Cite web |last=McLannahan |first=Ben |date=February 28, 2017 |title=Prosper to sell up to $5bn in loans to Fortress and Third Point |url=https://www.ft.com/content/120f89da-fd53-11e6-96f8-3700c5664d30 |access-date=December 31, 2023 |website=www.ft.com}}</ref> In December, New Residential acquired Mortgage Lender Shellpoint Partners for $190&nbsp;million.<ref>{{Cite news |date=November 29, 2017 |title=New Residential to Acquire Mortgage Lender Shellpoint Partners |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/new-residential-to-acquire-mortgage-lender-shellpoint-partners-1511987134 |access-date=December 31, 2023 |issn=0099-9660}}</ref>

In February 2019, Ditech filed for bankruptcy and in October sold its forward mortgage business to New Residential for $1.2&nbsp;billion.<ref>{{Cite news |last=Biswas |first=Soma |date=June 19, 2019 |title=Ditech Finds Two Buyers For Its Mortgage Servicing and Originations Business |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/ditech-finds-two-buyers-for-its-mortgage-servicing-and-originations-business-11560952805 |access-date=December 31, 2023 |issn=0099-9660}}</ref>

In April 2021, Newrez a mortgage lending and servicing unit under New Residential agreed to acquire Caliber Home Loans from Lone Star Funds in a $1.675&nbsp;billion deal. In February 2022,  Newrez laid off 386 employees or about 3% of its mortgage division.<ref>{{Cite web |last=Nunes |first=Flávia Furlan |title=NewRez lays off 386 following Caliber acquisition |url=https://www.housingwire.com/articles/newrez-lays-off-386-following-caliber-acquisition/ |access-date=December 31, 2023 |website=HousingWire |language=en-US}}</ref>

In October 2021, New Residential acquired Genesis Capital from [[Company:Goldman Sachs|Goldman Sachs]].<ref>{{Cite web |last=Clark |first=Patrick |date=October 11, 2021 |title=Goldman Sachs to Sell Fix-and-Flip Lender to New Residential |url=https://www.bnnbloomberg.ca/goldman-sachs-to-sell-fix-and-flip-lender-to-new-residential-1.1664722 |access-date=December 31, 2023 |website=BNN}}</ref>

In June 2022, New Residential became independent from Fortress by terminating its management agreement by paying a termination fee of $400&nbsp;million and rebranded as Rithm Capital with the ticker 'RITM'. It was done to reduce costs of around $60 to $65&nbsp;million and attract more [[Finance:Institutional investor|institutional investor]]s who avoid externally managed structures. It retain the employees of Fortress who were now permanently with Rithm and would be internally managed going forward<ref name="22AR" /><ref>{{Cite web |last=Nunes |first=Flávia Furlan |title=New Residential to internalize management, change name to Rithm Capital |url=https://www.housingwire.com/articles/new-residential-to-internalize-management-change-name-to-rithm-capital%EF%BF%BC/ |access-date=December 31, 2023 |website=HousingWire |language=en-US}}</ref><ref>{{Cite web |last=Mendoza |first=Candyd |date=June 20, 2022 |title=New Residential Corp. in major rebranding and restructuring |url=https://www.mpamag.com/us/news/general/new-residential-corp-in-major-rebranding-and-restructuring/410175 |access-date=December 31, 2023 |website=www.mpamag.com |language=en}}</ref>

In July 2023, after Goldman Sachs closed its consumer lending arm Marcus, it sold $1&nbsp;billion of Marcus Loans to Värde Partners and $1.4&nbsp;billion to Rithm.<ref>{{Cite news |date=July 20, 2023 |title=Rithm Joins Varde in Snapping Up Goldman's Consumer Loan Book |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2023-07-20/rithm-joins-varde-in-snapping-up-goldman-s-consumer-loan-book |access-date=December 31, 2023}}</ref>

In July 2023, [[Company:Sculptor Capital Management|Sculptor Capital Management]] agreed to be acquired by Rithm for $639&nbsp;million which was $11.15 per share. In August, Sculptor received a higher bid from a consortium of hedge funds led by Saba Capital Management along with Pershing Square Capital Management and Avenue Capital Group. Daniel Och was not satisfied with Rithm's offer and felt it didn't reflect the full value of the company.<ref>{{Cite web |last=Zuckerman |first=Gregory |title=WSJ News Exclusive {{!}} Wall Street All-Stars Including Weinstein, Ackman Bid for Hedge Fund |url=https://www.wsj.com/business/deals/wall-street-all-stars-including-weinstein-ackman-bid-for-hedge-fund-833726e0 |access-date=December 31, 2023 |website=WSJ |language=en-US}}</ref> In October, Rithm increased its bid to $720&nbsp;million at $12.70 per share which was accepted by both Sculptor and Och. Although the consortium offered an even higher bid, it was rejected as Sculptor did not believe it could be delivered.<ref>{{Cite web |last=Indap |first=Sujeet |date=October 27, 2023 |title=Daniel Och ends feud over Sculptor hedge fund |url=https://www.ft.com/content/396ec7bb-e70e-4555-8d49-b7c82dbe3450 |access-date=December 31, 2023 |website=www.ft.com}}</ref> On November 17, the deal was completed after the shareholders agreed to the acquisition.<ref>{{Cite web |last=Indap |first=Sujeet |date=November 16, 2023 |title=Sale of Sculptor Capital on cusp of approval after hedge fund brawl |url=https://www.ft.com/content/be169495-ae2d-44b4-a808-5c030347e177 |access-date=December 31, 2023 |website=www.ft.com}}</ref>

== References ==
{{reflist}}

== External links ==
{{Private equity and venture capital}}

[[Category:Companies listed on the New York Stock Exchange]]

{{Sourceattribution|Rithm Capital}}