Snapped up company will "create synergies" for the firm's single-family rental platform
Real estate giant New Residential Investment has completed its acquisition of business purpose lender Genesis Capital.
First announced in October, the deal will allow New Residential to expand its single-family rental portfolio and meet increasing demand from its retail and wholesale origination channels. The firm funded the acquisition with existing cash and committed asset-based financing from Goldman Sachs.
Read more: New Residential to acquire fix-and-flip lender Genesis Capital
Genesis, which is expected to originate approximately $2 billion of loans in 2021, will operate as an independent subsidiary of New Residential.
Commenting on the completion of the deal, New Residential head Michael Nierenberg said Genesis “adds another complementary operating company to New Residential’s portfolio of investments.”
“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,” Nierenberg added. “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.”
“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 Genesis Capital CEO Robert Wasmund. “We believe our newfound partnership will help enable Genesis to thrive in a US 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.”
