XML 42 R31.htm IDEA: XBRL DOCUMENT v3.25.2
NONCONTROLLING INTERESTS
 6 Months Ended
Jun. 30, 2025
Noncontrolling Interest [Abstract]  
NONCONTROLLING INTERESTS NONCONTROLLING INTERESTS
Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than Rithm Capital, and it is presented as a separate component of equity on the Company’s consolidated balance sheets. These interests are related to noncontrolling interests in consolidated entities that hold servicer advance investments (Note 14), the Newrez Joint Ventures, consumer loans (Note 8), asset management investments, Excess MSRs and other investments.

Others’ interests in the equity of consolidated subsidiaries is computed as follows:
June 30, 2025December 31, 2024
Total Consolidated EquityOthers' Ownership InterestNoncontrolling Interest in Equity of Consolidated SubsidiariesTotal Consolidated EquityOthers' Ownership InterestNoncontrolling Interest in Equity of Consolidated Subsidiaries
Advance Purchaser$86,594 10.7 %$9,259 $91,384 10.7 %$9,770 
Newrez Joint Ventures19,077 49.5 %9,443 19,621 49.5 %9,687 
Excess MSRs128,280 20.0 %25,656 136,645 20.0 %27,329 
Other investments96,426 24.6 %23,715 50,778 10.0 %4,608 
Asset management938,160 
n/m(B)
42,753 844,669 
n/m(B)
39,942 
Others’ interests in the net income (loss) of consolidated subsidiaries is computed as follows:     
Three Months Ended June 30,
20252024
Net Income (Loss)Others’ Ownership Interest as a Percent of TotalNoncontrolling Interest in Income (Loss) of Consolidated SubsidiariesNet Income (Loss)Others’ Ownership Interest as a Percent of TotalNoncontrolling Interest in Income (Loss) of Consolidated Subsidiaries
Advance Purchaser$1,446 10.7 %$154 $(1,149)10.7 %$(123)
Newrez Joint Ventures1,982 49.5 %981 2,052 49.5 %1,016 
Consumer Loan Companies(A)
731 — %— (7,318)46.5 %(3,403)
Excess MSRs3,441 20.0 %688 23,182 20.0 %4,636 
Other investments2,550 24.6 %691 — N/A— 
Asset management(2,783)
n/m(B)
655 25,964 
n/m(B)
835 
Six Months Ended June 30,
20252024
Net Income (Loss)Others’ Ownership Interest as a Percent of TotalNoncontrolling Interest in Income (Loss) of Consolidated SubsidiariesNet Income (Loss)Others’ Ownership Interest as a Percent of TotalNoncontrolling Interest in Income (Loss) of Consolidated Subsidiaries
Advance Purchaser$1,110 10.7 %$118 $8,381 10.7 %$895 
Newrez Joint Ventures2,697 49.5 %1,335 2,164 49.5 %1,071 
Consumer Loan Companies(A)
(819)— %— (5,127)46.5 %(2,384)
Excess MSRs4,764 20.0 %952 23,182 20.0 %4,636 
Other investments4,280 24.6 %1,191 — N/A— 
Asset management(64,900)
n/m(B)
659 (13)
n/m(B)
2,195 
(A)On June 28, 2024, Rithm Capital purchased the remaining 46.5% interest in the Consumer Loan Companies from the co-investor for a total purchase price of $22.0 million. Following the acquisition, Rithm Capital owns 100% interest in the Consumer Loan Companies.
(B)Percentage in the table above deemed “n/m” are not meaningful. Noncontrolling interests related to asset management investments represent the ownership interests in certain funds held by entities or persons other than the Company. These interests substantially relate to interests held by employees in real estate and energy funds managed by the Company adjusted for their capital activity and allocated earnings in such funds. Such employees’ portion of carried interest is expensed and recorded within compensation and benefits on the consolidated statements of operations and therefore excluded in the calculation of noncontrolling interests.

Redeemable Noncontrolling Interests

In the first quarter of 2025, the Company consolidated the SPAC it sponsors. The Class A ordinary shares issued by the consolidated SPAC are redeemable for cash by the public shareholders at the time of a business combination or in the event the SPAC is unable to complete a business combination by a set date. Since the redemption of the Class A ordinary shares is outside the Company’s control, they are not classified as permanent equity and are recognized as redeemable noncontrolling interests in consolidated subsidiaries in the consolidated balance sheets.

Additionally, in the first quarter of 2025, certain interest held by a third-party in a consolidated entity is classified within redeemable noncontrolling interests due to a redemption feature.

The following table presents the activity in redeemable noncontrolling interests:
SPACConsolidated EntityTotal
Balance at December 31, 2024$— $— $— 
Initial carrying value214,389 27,460 241,849 
Distributions— (430)(430)
Change in redemption value15,611 — 15,611 
Comprehensive income3,369 564 3,933 
Balance at June 30, 2025$233,369 $27,594 $260,963