Goldman Sachs is promoting fix-and-flip lenders to New Residential

A contractor works on a home in Barrie, Ontario, Canada.

Galit Rodan / Bloomberg

New Residential Investment Corp. has agreed to buy Genesis Capital LLC, a lender aimed at fix-and-flip investors and small landlords, from affiliates of Goldman Sachs Group Inc.

The purchase of Genesis, which will raise approximately $ 2 billion in credit this year, gives New Residential a complementary deal, according to a statement Monday. Financial terms of the deal were not disclosed. Goldman acquired Genesis with 170 employees from Oaktree Capital Management LP four years ago.

"We see the Genesis acquisition as a great opportunity that supports our growing single-family home rental strategy and enables us to tap additional unmet demand from our retail and wholesale distribution channels," said Michael Kidneyberg, chief executive officer of New Residential in the statement. The New York-based Real Estate Investment Trust is managed by a subsidiary of Fortress Investment Group LLC.

Based in Sherman Oaks, California, Genesis has issued more than 12,000 loans since 2014. New Residential plans to complete the acquisition, which is expected to close by the end of the year, with existing cash and committed asset-based financing from. to finance Goldmann Sachs.

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