Renaissance Capital logo

Global asset manager's SPAC Rithm Acquisition files for a $200 million IPO

February 3, 2025
Rithm Acquisition logo

Rithm Acquisition, a blank check company formed by Rithm Capital targeting financial services and real estate, filed on Monday with the SEC to raise up to $200 million in an initial public offering.

The New York, NY-based company plans to raise $200 million by offering 20 million units at $10. Each unit consists of one share of common stock and one-third of a warrant, exercisable at $11.50.

Rithm Acquisition is led by CEO and Chairman Michael Nierenberg and CFO Varun Wadhawan, who currently serve as CEO and Managing Director of global asset manager Rithm Capital (NYSE: RITM), respectively. Formerly known as New Residential Investment, Rithm was formed as a permanent capital vehicle structured as a REIT within the ecosystem of its former external manager, an affiliate of Fortress Investment Group.

For years, Rithm has teased a potential IPO of its mortgage business, Newrez. Investment bank Keefe, Bruyette & Woods recently noted expectations for a 2025 IPO. While the SPAC could be used to take Newrez public, such related-party SPAC transactions are rare.

In line with Rithm's areas of focus, the SPAC plans to target the financial services and real estate sectors. It also expects to evaluate opportunities relating to digital infrastructure, including opportunities at the convergence of infrastructure and technology.

Rithm Acquisition was founded in 2024 and plans to list on the NYSE under the symbol RAC.U. Citi, BTIG, and UBS Investment Bank are the joint bookrunners on the deal.