(Bloomberg) -- New Residential Investment Corp. agreed to buy Genesis Capital LLC, a lender that caters to fix-and-flip investors and small landlords, from affiliates of Goldman Sachs Group Inc.
Buying Genesis, on pace to originate about $2 billion in loans this year, gives New Residential a complementary business, according to a statement Monday. Financial terms of the deal weren't disclosed. Goldman acquired Genesis, which has 170 employees, from Oaktree Capital Management LP four years ago.
“We see the acquisition of Genesis as a great opportunity that supports our growing single-family rental strategy and one that allows us to capture additional unmet demand from our retail and wholesale origination channels,” Michael Nierenberg, chief executive officer of New Residential, said in the statement. The New York-based real estate investment trust is managed by an affiliate of Fortress Investment Group LLC.
Genesis, based in Sherman Oaks, California, has originated more than 12,000 loans since 2014. New Residential said it plans to finance the acquisition, which is expected to close by the end of the year, with existing cash and committed asset-based financing from Goldman Sachs.
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