Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 353

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 353
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 of $731.6 million. The Company’s investments in CLOs are generally subordinated to other interests in the entities. Investors in the CLOs have no recourse against the Company for any losses incurred by the CLOs. The Company’s maximum exposure to loss is limited to the retained interest.During the third quarter of 2025, the Company entered into a strategic investment partnership with a third party investor to fund the acquisition of RTLs, originated and serviced by the Company’s subsidiary Genesis. The partnership is managed by the Company’s affiliate and is classified as a VIE. The Company is the primary beneficiary of the VIE as it has both (i) the power to direct the activities of a VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. Under certain circumstances, the Company’s interest in the strategic partnership could be subordinated up to a certain amount if the third party’s interest is not fully redeemed including achievement of a specified minimum return upon its redemption. The assets and liabilities of this partnership are presented within assets and liabilities of consolidated entities on the consolidated balance sheets. See Note 18 and Note 19 regarding the financing and fair value measurements of consolidated funds, respectively.The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on the consolidated balance sheets:

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RITHM CAPITAL CORP. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(dollars in tables in thousands, except share and per share data)

Advance PurchaserNewrez Joint VenturesResidential Mortgage LoansConsumer Loan CompaniesAsset Management and OtherSPACConsolidated Entities(A)TotalSeptember 30, 2025Loan Securitizations - Residential Transition LoansLoan Securitizations - Residential Mortgage LoansConsolidated FundsAssets:Servicer advance investments, at fair value$302,278 $— $— $— $— $— $— $— $— $302,278 Residential mortgage loans, HFS, at fair value— — 448,651 — — — — — — 448,651 Consumer loans— — — 178,365 — — — — — 178,365 Assets of consolidated entities - investments— — — — —