Company: RITM-PC
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001556593-25-000007
Chunk: 6

Company: Rithm Capital Corp.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 1
Chunk 6
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 continues to see strong momentum across the platform and capitalize on an attractive investment opportunity set, delivering strong risk-adjusted investment performance to fund investors. RCM Manager externally manages Rithm Property Trust and may in the future manage additional entities.

The asset management industry is intensely competitive, and we expect that it will remain so. We compete globally and regionally with other investment managers, including hedge funds, public and private investment firms, distressed debt funds, mezzanine funds and other CLO issuers, real estate development companies, business development companies, investment banks and other financial institutions worldwide. We compete for both investors in our funds and attractive investment opportunities based on a number of factors, including investment performance, brand recognition, business reputation, pricing, innovation, the quality of services we provide to the investors in our funds, the range of products we offer and our ability to attract and retain qualified professionals in all aspects of our business while managing our operating costs. We face competitors that are larger than we are and have greater financial, technical and marketing resources. Certain of our competitors may continue to raise capital to pursue investment strategies that may be similar to ours, which may create additional competition for investment 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 investments and establish broader networks of business relationships.

Investment Portfolio

Rithm Capital’s investment landscape has broadened over the years to include a wide range of products, including, but not limited to, residential mortgage loans, consumer loans, Non-Agency (as defined below) RMBS, Excess MSRs, servicer advances and SFR properties. 

We believe that current investment conditions continue to create opportunities to invest in high quality assets in the financial services and real estate sectors at attractive risk-adjusted yields and provide for bespoke servicing opportunities and increased investment opportunities more generally across Rithm Capital’s areas of focus. We believe that the quality of housing collateral and borrower credit, along with high yields, creates a strong value proposition today. This current economic backdrop is expected to lead to increased liquidity needs among market participants, presenting attractive investment opportunities.

The finalized U.S. federal banking regulator proposals are expected to ease capital requirements. However, we expect a “higher for longer” interest rate environment to change banks’ asset liability management practices to shorten the duration of their assets as competition for deposits remains high. We also expect bank merger and acquisition activity to pick up, leading to portfolio re