Business units include NewRez, Caliber Home Loans and Shellpoint Mortgage Servicing
Rithm Capital, the parent company of NewRez, Caliber Home Loans and Shellpoint Mortgage Servicing, said it is "evaluating alternatives" with plans to go public this year as it pivots towards being an alternative asset manager.
Rithm head Michael Nierenberg said Thursday during the firm's earnings call that they are evaluating alternatives for Rithm's mortgage operating units and will likely file an S-1 in the coming months.
"This will allow us to create other pools of liquidity to the extent we create a public entity and further diversify our business model," Nierenberg said. "On the capital raising side, we believe that we will raise significant pools of capital here over the course of the next three to nine months, which will allow us to grow earnings even more in the near future."
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The company generated a $68.9 million profit in the first quarter, down from $81.8 million in the prior quarter. Its origination and servicing segments posted a combined pre-tax income of $164 million and originated roughly $7 billion in loans. Rithm's MSR portfolio totaled $603 billion in UPB, slightly down from $609 billion.
"Over a year into the Fed's aggressive tightening cycle, we have effectively navigated the market and positioned our company for success," Nierenberg said. "Our focus on credit and risk management and our opportunistic approach to capital management has served the company and its shareholders extremely well.
"Our expansion into the private capital business and our emphasis on quality performance in our existing portfolio will drive our company through its next phase of growth. With plenty of uncertainty still to play out in the financial services space, Rithm is well-positioned to continue deploying capital into attractive opportunities. We look forward to seeing Rithm's success as we move through 2023 and beyond."
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