Rithm Capital Corp., an asset manager focused on the real estate and financial services industries, announced Monday it has entered into a definitive agreement with Computershare Limited to acquire Computershare Mortgage Services Inc. and certain affiliated companies, including Specialized Loan Servicing LLC, for a purchase price of approximately $720 million.
The acquisition includes approximately $136 billion in unpaid principal balance (UPB) of mortgage servicing rights, of which $85 billion is third-party servicing, along with SLS’s origination services business. Following the close of the transaction, SLS’s portfolio and operations will be transitioned to and managed by Newrez LLC (“Newrez”), a Rithm portfolio company.
“We are thrilled to welcome SLS to the Newrez family. Our track record of acquisitions in the mortgage servicing space continues to deliver value not only for our shareholders, but also for the millions of consumers we serve,” said Michael Nierenberg, chairman, CEO, and president of Rithm Capital.
“The addition of SLS continues to grow our best-in-class special servicing business and adds more clients and homeowners to the Newrez platform,” said Baron Silverstein, president of Newrez. “It further strengthens our origination and servicing channels, both of which are designed to deliver a customer experience that prioritizes a successful homeownership journey.”
“Rithm has strong mortgage industry credentials and the ability to bring capital to scale the business further. With its track record of successful M&A execution and integration, we expect a smooth transition for the business and our customers,” said Stuart Irving, CEO and president of Computershare.
Rithm Capital signed an agreement in July to acquire Sculptor Capital Management Inc. for $639 million. Rithm, the entity behind businesses such as NewRez and Caliber, is set to inherit $34 billion in assets under management from Sculptor. This portfolio includes assets across real estate, credit, and multi-strategy investing. At the time, Nierenberg called the transaction "transformational.” He said, “The combination of Sculptor’s $34 billion AUM with Rithm’s $7 billion permanent equity capital and $30+ billion balance sheet forms a first-rate asset management firm.”
In May, Rithm Capital brought on board Satish Mansukhani as managing director in investment strategy. He has quickly made an impact in his new role, where he leads in-house research and strategic positioning and covers new emerging opportunities within Rithm’s investment portfolio and operating platforms.
Rithm intends to finance the latest transaction through a mix of existing cash and available liquidity on the balance sheet and additional MSR financing.
The transaction remains subject to customary closing conditions, including regulatory approvals. Completion is expected to take place in the first half of 2024.
