Rithm Capital

Rithm Capital Corp.

Company type	Public
Industry	Investment management
Founded	May 16, 2013 (2013-05-16)
Headquarters	New York City , United States
Products	Real estate and alternative investment strategies

Rithm Capital Corp. (commonly known as Rithm) is a U.S.-based investment management firm located in New York, with a focus on real estate and alternative investment strategies.

Background

New Residential Investment Corp. originated on May 16, 2013, when Newcastle Investment Corp, a real estate investment trust (REIT) affiliated with Fortress Investment Group, separated its residential mortgage portfolio into this newly formed REIT. Trading on the NYSE under the symbol 'NRZ', New Residential concentrated on assets connected to mortgage servicing rights (MSRs). Fortress Investment Group provided management services to New Residential through a contract granting it 25% of operational funds and profits from asset disposals. In September 2013, Michael Nierenberg, previously the global head of mortgages at Bank of America, was appointed CEO by Fortress.

In February 2015, New Residential expanded by acquiring Home Loan Servicing Solutions for $1.3 billion. Subsequently, in January 2017, it purchased $97 billion worth of MSRs from Citigroup for $950 million as Citi exited the mortgage servicing market. The following month, New Residential partnered with Jefferies and Soros Fund Management in a consortium to acquire $5 billion in unsecured consumer loans from Prosper Marketplace. Later that year, in December 2017, the company acquired Shellpoint Partners, a mortgage lender, for $190 million.

Following the bankruptcy filing of Ditech in February 2019, New Residential acquired its forward mortgage operations for $1.2 billion in October. In April 2021, its mortgage lending and servicing subsidiary, Newrez, agreed to purchase Caliber Home Loans from Lone Star Funds for $1.675 billion; this transaction led to workforce reductions affecting approximately 3% of the mortgage division in early 2022.

In October 2021, New Residential completed the acquisition of Genesis Capital from Goldman Sachs. By June 2022, the company terminated its management contract with Fortress by paying a $400 million exit fee and rebranded itself as Rithm Capital with the ticker 'RITM'. This strategic move aimed to cut expenses by $60–65 million annually and attract institutional investors through internalized management.

In July 2023, after Goldman Sachs shut down its Marcus consumer lending business, Rithm acquired $1.4 billion of Marcus loans. That same month, Rithm agreed to purchase Sculptor Capital Management for $639 million at $11.15 per share. Although a rival bid emerged from hedge funds such as Saba Capital Management and Pershing Square Capital Management, it was ultimately declined. In October 2023, Rithm raised its offer to $720 million ($12.70 per share), which was accepted by Sculptor and its founder Daniel Och despite a higher competing bid that was considered undeliverable. The transaction was finalized on November 17 following shareholder approval.