Company: RITM-PC
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001556593-25-000016
Chunk: 368

Company: Rithm Capital Corp.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 2
Chunk 368
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 is subject to significant uncertainty. However, we currently expect that net recoveries of servicer advances will exceed net fundings for the foreseeable future. This expectation is based on judgments, estimates and assumptions, all of which are subject to significant uncertainty. In addition, those certain limited 

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liability companies which hold certain of our consumer loan portfolios have invested in loans with an aggregate of $143.5 million of unfunded and available revolving credit privileges as of March 31, 2025. However, under the terms of these loans, requests for draws may be denied and unfunded availability may be terminated at management’s discretion. Genesis had commitments to fund up to $1.3 billion of additional advances on existing mortgage loans as of March 31, 2025. These commitments are generally subject to loan agreements with covenants regarding the financial performance of the customer and other terms regarding advances that must be met before Genesis funds the commitment. Rithm Capital has invested in various commercial real estate projects. As part of its investments, Rithm Capital is required to fund its pro rata share of future capital contributions subject to certain limitations. As of March 31, 2025, the Company has an unfunded capital commitment to fund up to $86.9 million on an existing loan to a certain commercial real estate borrower. As of March 31, 2025, the Company has unfunded capital commitments of $286.5 million to certain funds Sculptor manages, of which $21.3 million relates to commitments of consolidated funds. Approximately $126.8 million of the commitments will be funded by contributions to Sculptor from certain current and former employees and executive managing directors. Lastly, during the first quarter of 2025, the Company, through a consolidated subsidiary, entered into a joint venture which the company consolidates, with a third party to acquire an interest in an affiliated fund. As of March 31, 2025, the unfunded capital commitment to the consolidated joint venture was $155.5 million, of which $124.4 million is expected to be funded by the third-party.

INFLATION

Virtually all of our assets and liabilities are financial in nature. As a result, interest rates and other factors affect our performance more so than inflation, although inflation rates can often have a meaningful influence over the direction of interest rates. Furthermore, our financial statements are prepared in accordance with GAAP and our distributions are determined by our board of directors primarily based on our taxable income, and, in