RELATED PARTY TRANSACTIONS (AS RESTATED)

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS (AS RESTATED)

RELATED PARTY TRANSACTIONS (AS RESTATED)

The Company follows ASC 850, Related Party Disclosure, for the identification of related parties and disclosure of related party transactions. A party is considered to be related to us if the party, directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with us. Related parties also include principal owners, management and directors, as well as members of their immediate families or any other parties with which we may deal if one party to a transaction controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests.

Loan Agreement

In July 2023, Rithm Capital entered into an agreement that holds a limited partnership interest in a commercial real estate development project. Rithm Capital’s limited partnership interest is accounted for under the equity method and is recorded within other assets on the Consolidated Balance Sheets. Concurrently, Genesis entered into a loan agreement in the amount of $86.4 million with a term of 36 months unless otherwise extended with the entity. This loan is included in Mortgage Loans Receivable, at fair value on Rithm Capital’s Consolidated Balance Sheets.

Due from Related Parties

Amounts due from related parties relate primarily to amounts due from the funds for expenses paid on their behalf. These amounts are reimbursed to the Company on an ongoing basis.

Management Fees and Incentive Income Earned from Related Parties and Waived Fees

The Company, through Sculptor, earns substantially all of its management fees and incentive income from the funds, which are considered related parties as Sculptor manages the operations of and makes investment decisions for these funds.

As of December 31, 2023, approximately $665.1 million of the Company’s AUM represented investments by Sculptor, its current executive managing directors, employees and certain other related parties in Sculptor’s funds. As of December 31, 2023, approximately 49% of these AUM were not charged management fees or incentive income.

Investment in Structured Alternative Investment Solution

In the first quarter of 2022, Sculptor closed on a $350.0 million structured alternative investment solution, a collateralized financing vehicle consolidated by Sculptor. Sculptor invested approximately $127.8 million in the vehicle. See Note 21 and Note 22 for additional details on the structured alternative investment solution.

Investments in Consolidated Loan Securitizations

The Company retains beneficial interests in consolidated loan securitization trusts that it sponsors. Refer to Note 22 for additional details.