Rithm Capital Buys $1.4B Of Marcus Loans From Goldman Sachs

Rithm Capital Corp. RITM purchased $1.4 billion of prime unsecured consumer loans from Goldman Sachs Group, Inc. GS.

The pool represents a portion of the broader Marcus portfolio previously owned and held on the balance sheet by Goldman Sachs. 

Goldman Sachs recently was in the headlines for reportedly selling $1 billion of Marcus loans to investment firm Varde Partners as a part of its plan to exit the lending business. The deal depicted the most recent tranche of Marcus borrowings that Goldman has been offloading since earlier this year. 

Related: Goldman Divests $1B Of Marcus Loans To Varde Partners: Report

The pool acquired by RITM comprises 100% fixed-rate closed-end installment loans in which ~95% of the pool originated between 2021 Q4 and 2022 Q4 from the post-COVID demand boost. 

"This purchase is extremely attractive to us building off our past and current expertise in consumer finance," said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital.

GS recently reported the second-quarter earnings print that fell short of expectations, as it saw its worst quarterly profits since the early stages of the pandemic-induced recession back in 2020.

Also Read: Is Goldman Sachs Bleeding From Apple Card Tieup? What A Closer Look At Q2 Results Reveals

Price Action: RITM shares are trading higher by 1.01% to $9.85 in the premarket session on the last check Friday.