Rithm Capital: Expanding Horizons in Asset Management

Rithm Capital Corp. (NYSE: RITM), a global asset manager and real estate investment trust (REIT), has been making waves in the financial services and mortgage industries since its inception in 2011. With a diverse portfolio spanning origination, servicing, investment management, and commercial real estate, Rithm Capital has consistently demonstrated its ability to navigate complex market environments and deliver consistent returns for its shareholders. In recent years, the company has expanded its asset management business through strategic acquisitions and partnerships, positioning itself as a leading player in the alternative asset management sector.

One of the key factors driving Rithm Capital's growth in its asset management business is its acquisition of Sculptor Capital Management Inc. (NYSE: SCU) in November 2023. This transaction, valued at approximately $639 million, brought together two organizations with strong track records, excellent management teams, and seasoned investment professionals. The acquisition of Sculptor, a global alternative asset manager with $34 billion in assets under management (AUM), significantly expanded Rithm Capital's capabilities in the alternative asset management sector, diversifying its AUM across real estate, credit, and multi-strategy platforms.

The combination of Rithm Capital and Sculptor's platforms creates a compelling partner for investors, with complementary capabilities that enhance transaction potential and benefit shareholders, fund investors, and employees. Rithm Capital's operating businesses, such as Newrez and Genesis, manufacture assets through origination, underwriting, and servicing, while Sculptor's global investment platform offers expertise in opportunistic investing across credit, real estate, and multi-strategy platforms. This unique combination of operating companies and asset management provides Rithm Capital with a competitive advantage in the market, enabling it to deliver strong and consistent performance across changing market environments.

Rithm Capital's asset management business has also benefited from the company's ability to attract and retain top talent. The acquisition of Sculptor brought a long-tenured management and investment team with a strong track record in alternative asset management to the Rithm platform. This experienced team, led by Jimmy Levin as CIO and Executive Managing Partner, has contributed to the growth and success of the asset management business. The combination of Rithm Capital and Sculptor's platforms has created a world-class asset management business, with a strong global investment platform and the potential to deliver great long-term value for shareholders and fund investors.

In conclusion, Rithm Capital's unique business model, which combines operating companies and asset management, provides a competitive advantage in the market. The company's strategic acquisition of Sculptor Capital Management, coupled with its ability to attract and retain top talent, has driven the growth and success of its asset management business. As Rithm Capital continues to expand its capabilities and product offerings, it is well-positioned to deliver strong and consistent performance for its shareholders and fund investors.