New Residential Investment Corp Buys Genesis Capital from Goldman Sachs
Posted on 10/14/2021
New Residential Investment Corp. entered into a definitive agreement to buy Genesis Capital, LLC from affiliates of The Goldman Sachs Group, Inc. Genesis Capital LLC is a business purpose lender (private mortgage lender) that provides innovative solutions to developers of new construction, fix and flip, and rental hold projects. New Residential Investment Corp. is also buying a related portfolio of loans. Genesis is expected to originate approximately US$ 2 billion of loans in 2021 and has originated over 12,000 loans since 2014. Genesis supports developers throughout the property lifecycle, partnering to create value for their long standing and new borrower relationships. New Residential intends for Genesis to operate as an independent subsidiary of New Residential. New Residential intends to finance the transaction with existing cash and committed asset-based financing from Goldman Sachs. Headquartered in Sherman Oaks, California, Genesis has 170 employees.
New Residential is organized and conducts its operations to qualify as a real estate investment trust for federal income tax purposes and is managed by an affiliate of Fortress Investment Group LLC.
Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to New Residential. Goldman Sachs & Co. LLC acted as exclusive financial advisor and Davis Polk & Wardwell LLP acted as legal advisor to Genesis Capital.
Back in October 2017, Goldman Sachs bought Genesis Capital from funds managed by Oaktree Capital Management L.P. and Oaktree management.