New Residential Investment Corp. to acquire Genesis Capital LLC
Genesis Acquisition Adds Complementary Commercial Lending Capabilities to New Residential’s Mortgage Product Line
NEW YORK, October 11, 2021– (BUSINESS WIRE) – New Residential Investment Corp. (NYSE: NRZ; “New Residential” or the “Company”) announced today that it has entered into a definitive agreement with subsidiaries of The Goldman Sachs Group, Inc. (“Goldman Sachs”) to acquire Genesis Capital LLC (“Genesis”), a leading commercial lender providing innovative solutions to developers of new construction, repair, turnaround and lease projects, and acquiring a related loan portfolio. Genesis is expected to generate approximately $ 2 billion in loans in 2021 and has made over 12,000 loans since 2014. Genesis supports developers throughout the lifecycle of the property, partnering to create value for their relationships long-standing and new borrowers. New Residential intends to make Genesis an independent subsidiary of New Residential.
“The acquisition of Genesis adds a new complementary line of business to our company and enhances our ability to create and maintain additional strong real estate assets for our balance sheet,” said Michael Nierenberg, Chairman, CEO and president of New Residential. “We are excited to be working with the seasoned team at Genesis and adding commercial lending to our product line, further enhancing our connectivity with a new subset of borrowers. We see the acquisition of Genesis as an excellent opportunity that supports our growth in the rental of single-family homes. strategy and which allows us to capture additional unmet demand from our retail and wholesale origination channels. “
“We are thrilled to join the New Residential family and share our mission of providing differentiated solutions to our borrowers,” said Robert Wasmund, CEO of Genesis. “Over the years, we have made Genesis a leader in the commercial lending industry, providing developers with a wide range of customized solutions. We pride ourselves on excellence in execution, which is why nearly all of our clients are repeat borrowers and our portfolio has We look forward to combining our experience with New Residential’s in-depth industry knowledge and strong balance sheet as we are looking to expand our product offering and expand into new markets. “
Anthony Arnold, Managing Director of Goldman Sachs, said, “We would like to thank the Genesis management team for their leadership throughout our investment. credit quality. We are delighted that they have found a great partner to continue their growth and we wish them every success.
New Residential intends to fund the transaction with existing liquidity and committed funding on the asset base of Goldman Sachs. The transaction is expected to close in the fourth quarter of 2021, subject to certain customary closing approvals and conditions.
Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to New Residential. Goldman Sachs & Co. LLC acted as exclusive financial advisor and Davis Polk & Wardwell LLP as legal advisor to Genesis.
ABOUT THE NEW RESIDENTIAL
New Residential is a leading provider of capital and services to the mortgage lending and financial services industry. The Company’s mission is to generate attractive risk-adjusted returns in all interest rate environments through a complementary portfolio of investments and operating activities. Since its inception in 2013, New Residential has paid over $ 3.7 billion in dividends to shareholders. New Residential’s investment portfolio is made up of assets related to mortgage management (full and excess MSRs and service advances), residential securities (and rights called associated) and loans (including single-family rentals). and consumer loans. New Residential’s investments in operating entities include leading creation and service platforms through wholly owned subsidiaries, Newrez LLC and Caliber Home Loans Inc., as well as investments in affiliated companies that provide services. related to mortgages. New Residential is organized and operates to qualify as a Real Estate Investment Trust (REIT) for federal income tax purposes and is managed by a subsidiary of Fortress Investment Group LLC (“Fortress”), a corporation global investment management company, and headquartered in New York City. Fortress manages $ 53.9 billion in assets under management as of June 30, 2021 on behalf of approximately 1,800 institutional clients and private investors worldwide through a range of credit and real estate, capital- investment and permanent capital investment.
Genesis offers a variety of financing options to the nation’s leading single-family and multi-family residential real estate developers, leveraging its expertise, proprietary data and long-term relationships with borrowers. Genesis offers both agility and speed as well as reliable, integrated customer service. Based in Sherman Oaks, California, Genesis has 170 employees.
ABOUT GOLDMAN SACHS
The Goldman Sachs Group, Inc. is a leading global financial institution providing a broad range of financial services in the areas of investment banking, securities, investment management and consumer banking at a large and diverse clientele including businesses, financial institutions, governments and individuals. Founded in 1869, the company is headquartered in New York City and has offices in all of the major financial centers around the world.
Certain information in this press release constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to (i) the future performance of Genesis, including, without y limit, its expected origin of approximately $ 2 billion in loans in 2021, (ii) statements regarding the impact of Genesis and the related loan portfolio on the Company’s business and future performance, and (iii) statements regarding the transaction, including the ability to obtain all required approvals and complete the transactions on time or not at all. These statements are not historical facts. They represent management’s current expectations regarding future events and are subject to a number of trends and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those described in forward-looking statements. Therefore, you should not place undue reliance on the forward-looking statements contained herein. These risks and factors include, but are not limited to, risks associated with the transaction, including with respect to the satisfaction of closing conditions and the timing thereof; unforeseen difficulties in financing the transaction; unexpected challenges related to the integration of Genesis business and operations; changes in general economic conditions and / or industry specific; difficulty obtaining consent from government and other third parties in connection with the transaction; changes in general economic conditions and / or industry specific; related unforeseen expenses or debts arising from the transaction or acquired businesses; uncertainties as to the timing of the transaction; litigation or regulatory matters relating to the transaction or the business acquired; the impact of the transaction on relationships with, and potential retention difficulties, employees, customers and other third parties; and the inability to obtain, or delays in obtaining, the expected benefits of the transaction.
For a discussion of some of the important risks and factors that could affect these forward-looking statements, see the sections entitled “Caution Regarding Forward-Looking Statements”, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and results of operations “in the Company’s most recent annual and quarterly reports and other documents filed with the United States Securities and Exchange Commission, which are available on the Company’s website (www.newresi.com New risks and uncertainties emerge from time to time, and it is not possible for New Residential to predict or assess the impact of every factor that could cause its actual results to differ from those contained in forward-looking statements. The forward-looking statements contained in this document speak only as of the date of this press release, and New Residential disclaims expressly any obligation to publicly post any update or revision to any forward-looking statement contained herein to reflect any change in New Residential’s expectations in this regard. or a change in the events, conditions or circumstances upon which any statement is based.
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New residential investor relations
Head of Investor Relations