New Residential Investment Corporation [1] has finalized the acquisition of Genesis Capital LLC [2], a business purpose lender, along with a related portfolio of loans, from affiliates of the Goldman Sachs Group.
“The closing of the Genesis acquisition adds another complementary operating company to New Residential’s portfolio of investments,” said Michael Nierenberg [3], Chairman, CEO and President of New Residential. “We expect that Genesis’s ability to manufacture high-quality loans to the real estate industry will help enable New Residential to generate more earnings for our shareholders. Genesis’s proven management team, powerful technology and data-driven operations are value-additive for New Residential and will create synergies for our growing single-family rental platform. We are excited about our combined future and the opportunities we will create together.”
Genesis is projected to originate approximately $2 billion of loans in 2021 and has originated over 12,000 loans since 2014.
“Having worked closely with the New Residential team over the last few months to close the transaction, we are eager to join the family,” said Robert Wasmund [4], CEO of Genesis. “We believe our newfound partnership will help enable Genesis to thrive in a U.S. housing market with decreasing supply and increasing demand, particularly in the build-to-rent space. We look forward to expanding our product set, entering new markets, and leveraging the deep financial services and risk management expertise of New Residential to drive continued excellence across the company.”
New Residential recently launched an underwritten public offering [5] of Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock (preferred stock), subject to market conditions. New Rez listed the preferred stock on the New York Stock Exchange under the symbol “NRZ PR D.”
In addition, the company also elected Patrice M. Le Melle [6], Associate General Counsel at Columbia University, as an independent member of its Board of Directors, bringing New Residential’s Board to a total of eight members.