Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 5

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 5
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 in “high-touch servicing,” we believe we are favorably positioned to navigate through various economic and credit cycles. 

The need for “high-touch” non-bank special servicers remains elevated as borrowers continue to seek solutions to their financial hardships. Special servicers have proven more willing and more well-equipped to perform the operationally intensive activities (e.g., collections, foreclosure avoidance and loan workouts) required to service credit-sensitive loans.

Residential Transitional Lending

The residential transitional lending (“RTL”) industry is intensely competitive, and we expect that it will remain so. Our subsidiary, Genesis Capital, competes nationally with other residential real estate lenders, including regional banks, private lending institutions and other specialized financial service providers. We compete for both experienced sponsors, including developers and investors in residential real estate, and attractive lending opportunities based on a number of factors, including the quality and range of our loan programs, brand recognition, business reputation, pricing, innovation, industry expertise and our ability to provide tailored solutions while managing our operating costs.

We face competitors of varying sizes with specialized financial, technical and marketing resources. Certain of our competitors may continue to raise capital to pursue lending strategies that may be similar to ours, which may create additional competition for lending opportunities. In addition, some of these competitors may have higher risk tolerances or make different risk assessments than we do, or may have lower return thresholds, allowing them to consider a wider variety of lending opportunities and establish broader networks of business relationships.

Despite this competitive landscape, we believe Genesis’ suite of loan programs, including new construction, bridge, build-to-rent, rental hold, fix and flip and vacation rental loans, provides us with a competitive advantage over regional community banks that have historically acted as primary providers of capital within this space. In 2024, Genesis originated 1,476 business purpose loans with a UPB of $3.6 billion. 

Asset Management

Our Asset Management segment primarily operates through our wholly-owned subsidiaries, Sculptor and RCM Manager. Sculptor is a leading global alternative asset manager and a specialist in opportunistic investing with approximately $34.0 billion in AUM as of December 31, 2024. Sculptor provides asset management services and investment products across credit, real estate and multi-strategy platforms through commingled funds, separate accounts and other alternative investment vehicles. 

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Sculptor pursues consistent, long-term performance by balancing the flexibility to act swiftly in ever changing markets with a rigorous diligence process that aims to minimize risk for clients. Sculptor