Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you give us any updated thoughts on the potential listing of Newrez in 2025? And could you also tie that into your comments about potential changes in the capital structure at Rithm? A: Michael Nierenberg, Chairman, CEO, and President of Rithm Capital, stated that they are not ready to list Newrez yet. They have taken steps to have separate segment reporting for clarity. The focus is on growing the REIT and potentially having a C Corp structure with operating companies below. The M&A pipeline is robust, and while they aim for changes in 2025, the timeline is uncertain.
Q: What assets do you find attractive for scaling up the REIT, and how would you look to scale it up? A: Michael Nierenberg explained that they plan to continue focusing on the mortgage company and MSR business, which have been beneficial. They see growth in non-QM assets and Genesis Capital's offerings. The strategy involves leveraging existing strengths and expanding third-party servicing.
Q: Can you provide more detail on the initiatives to grow the credit business at Sculptor and expectations for fundraising this year? A: Michael Nierenberg emphasized that performance will drive AUM growth. The team is actively engaging with LPs, and while M&A is an option, they are cautious about valuations. They expect a good year for fundraising, particularly in real estate and credit, though they are not at the scale of larger firms like Blackstone or Apollo.
Q: Is there any value in pushing assets into the Rithm Property Trust structure, or would you prefer creating separate vehicles over time? A: Michael Nierenberg prefers not to transfer assets between REITs. They are considering transactions where both Rithm and Rithm Property Trust could participate separately. The focus is on creating more vehicles and exploring new verticals, such as energy infrastructure, with third-party capital commitments.
Q: How do you plan to continue driving market share growth in the non-QM and home equity space amid increasing competition? A: Baron Silverstein, President of Newrez, highlighted investments in the team, technology, and brand as key initiatives. They focus on maximizing opportunities within their existing portfolio and are making significant platform investments to support growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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