FICC Focus Credit Crunch: Rithm’s Nierenberg on M&A, Recasting Perceptions
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Sep 29, 2025 Michael Nierenberg, Chairman, President, and CEO of Rithm Capital, shares insights from his extensive career in asset management. He discusses Rithm’s strategic M&A growth, including the acquisition of Paramount Group and Crestline, aimed at enhancing their credit capabilities. Nierenberg emphasizes the importance of technology and AI in mortgage operations, and the company's focus on consumer lending niches. He also explores the impact of current economic conditions on the credit cycle and how volatility can present unique investment opportunities.
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Origins Of The Platform
- Michael Nierenberg recounts starting New Residential in 2013 to exploit MSR dislocations after Basel III pushed banks to sell servicing assets.
- That initial $1bn vehicle grew into a platform with ~$8bn permanent capital and about $100bn AUM through operating businesses and M&A.
Use Opportunistic M&A To Accelerate Scale
- Pursue M&A opportunistically to acquire scale and capabilities that organic growth would take years to build.
- Use deals to buy talent, licenses, and operating capacity that accelerate control over your own destiny.
Office Gateway Properties Are A Strategic Bet
- Rithm sees gateway-office assets in NYC and San Francisco as attractively positioned amid tightening supply and returning demand.
- The plan is to combine ownership with third-party capital and asset management fees to enhance returns.