Financial Data and Key Metrics Changes - Earnings available for distribution (EAD) was $0.52 per diluted share, representing an 8% year-over-year growth, marking the 22nd consecutive quarter where EAD exceeded common dividends paid [17] - GAAP net income was $36.5 million or $0.07 per diluted share, with a 2% return on equity [17] - Book value at the end of the quarter was $12.39, with the company trading at $10.40, indicating that equity is perceived as severely undervalued [19][30] Business Line Data and Key Metrics Changes - Genesis Capital produced nearly $1 billion in production, reflecting a 7% increase year-over-year [20] - Sculptor's asset management business reported $35 billion of assets under management (AUM) with $1.4 billion of gross inflows across the platform [21] - Newrez, as the third-largest servicer and fifth-largest originator, had a funded volume of just under $12 billion, generating $270 million of pre-tax income [23][43] Market Data and Key Metrics Changes - The company has over $80 billion of assets under management, with significant growth in various sectors including real estate, credit, energy, and infrastructure [15][16] - The servicing portfolio at Newrez is approximately $850 billion, which includes $509 billion of owned mortgage servicing rights (MSRs) [47] Company Strategy and Development Direction - The company aims to grow off-balance sheet capital and expand investment verticals, including energy transition and infrastructure funds [26][27] - There is a focus on building partnerships with limited partners (LPs) to enhance capital raising efforts and improve overall business performance [27][73] - The company is exploring various capital actions to unlock shareholder value, including potential public listings and restructuring [59][113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility, emphasizing the importance of performance and risk management [6][7] - The outlook for the asset management business remains positive, with expectations of continued inflows and strong performance across various funds [37][80] - Management is optimistic about the potential for acquisitions in both the mortgage and asset management sectors, particularly in light of lower valuations in the current market [68][69] Other Important Information - The company is rolling out MSR funds, which are expected to attract significant demand in the marketplace [12][85] - The SPAC initiative aims to generate asset management fees and create off-balance sheet investment opportunities [40][108] Q&A Session Summary Question: Update on the Cooper Rocket transaction and its impact on Newrez - Management indicated that it would be business as usual for Newrez, with potential opportunities for subservicing arising from the transaction [56] Question: Thoughts on potential acquisition opportunities - Management confirmed an active M&A pipeline, particularly in the mortgage and asset management spaces, with a focus on scaling the credit business [68][69] Question: Fundraising activity and LP appetite amid volatility - Management reported strong fundraising momentum and emphasized the importance of building relationships with LPs for future success [72][73] Question: Performance and returns at Sculptor - Management highlighted strong performance across the credit and real estate businesses, with significant commitments in the real estate fund [80][81] Question: Insights on the securitization market amid volatility - Management noted that the market remains open for deals, with opportunities arising from wider spreads [95][96] Question: Update on the SPAC vehicle and its strategic rationale - Management explained that the SPAC provides a low-cost option for generating asset management fees and deploying capital effectively [108] Question: Potential structural changes to unlock value - Management is exploring various options, including the possibility of transitioning to a C-Corp structure to enhance valuation [127][130]