Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 291

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 1
Chunk 291
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 certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 19 for details on unobservable inputs.The following table summarizes the Company’s involvement, through Sculptor, with VIEs that are not consolidated and is generally limited to providing asset management services and, in certain cases, investments in the VIEs. The maximum exposure to loss represents the potential loss of current investments or income and fees receivables from these entities, as well as the obligation to repay unearned revenues, primarily incentive income subject to clawback, in the event of any future fund losses, as well as unfunded commitments to certain funds that are VIEs. The Company does not provide, nor is it required to provide, any type of non-contractual financial or other support to its VIEs that are not consolidated beyond its share of capital and other commitments described in Note 25.March 31, 2025December 31, 2024Maximum Risk of Loss as a Result of the Company’s Involvement with Unconsolidated VIEs:Unearned income and fees$14,882$17,268Income and fees receivable28,23435,723Investments691,818577,849Unfunded commitments(A)173,520174,530Other commitments25,52125,521Maximum Exposure to Loss$933,975$830,891(A)Includes commitments from certain current and former employees and executive managing directors in the amounts of $110.7 million and $133.9 million as of March 31, 2025 and December 31, 2024, respectively.The following table summarizes the carrying value of the Company’s unconsolidated commercial real estate projects which reflects the Company’s maximum exposure to loss. See Note 25 regarding certain guarantees provided in connection with the investments. These investments are presented as part of equity investments within other assets on the consolidated balance sheets:March 31, 2025December 31, 2024Carrying value of commercial real estate held within unconsolidated VIEs$195,658 $190,258 Carrying value of Rithm Capital’s investments in unconsolidated commercial real estate VIEs60,342 57,846 The Company holds a 70% membership interest in the Credit Risk Transfer LLC, a VIE that holds exposures in warehouse lines collateralized by residential mortgage loans. The Company does not have power to make significant decisions unilaterally over the VIE; therefore,