Michael Nierenberg: I think it’s both, actually. I think — listen, banks are always a little bit hesitant around the construction angle. When you look at our overall business lines, think about it this way. Somebody comes to us with a development of multi or, call it, single-family rental. Genesis will out and make that loan on the single-family rental side or — I’m sorry, they’ll make that loan to the sponsor who are then going to construct single-family rental homes. Adoor our single-family rental business will then buy those homes and then we’ll get them leased up. So we’re seeing a lot more of what I would say is a platform origination today than what we’ve done in years past. And as you look at Genesis, when I say the 66 different sponsors, the banks are pulling back a little bit, but the team itself is doing a great job in kind of broadening the sponsorship.
When we first bought this business, the amount of concentration with 1 large sponsor was, I think, around 25% — 25% or 30%. Today, it’s so spread out. And when you think about where you are from a risk-adjusted basis, you were in a much, much better place today than we — than I think we were when we actually acquired the platform from Goldman.
Stephen Laws: All right. Very helpful. Congratulations on the results. I’ll hop back in the queue.
Michael Nierenberg: Thank you.
Operator: The next question comes from Trevor Cranston of JMP Securities. Please go ahead.
Trevor Cranston: Hey, thanks. Good morning. You guys talked a lot about growth opportunities across the entire platform, some of which are non-reach investment portfolio opportunities. I guess when you think about the overall capital deployment that you guys have and the return opportunity out there, can you sort of give us an update on how you think about the dividend level for the overall company in light of all that? Thanks.
Michael Nierenberg: So the dividend, obviously, we outperform our dividend, and hopefully, we’ll continue to do that quarter-after-quarter. The calculation for us is if we can deploy capital at a 12%, 13%, 14%, 20% return, use 15% on average. If we could deploy capital at 15% rate of return versus a dividend yield of 9% or something around that, everything we do from an investment standpoint is going to be highly accretive versus giving money back. So that’s how we think about it.
Trevor Cranston: Okay. Appreciate the color. Thank you.
Michael Nierenberg: Thank you.
Operator: The next question comes from Crispin Love of Piper Sandler. Please go ahead.
Crispin Love: Thanks, good morning. Just when you’re thinking about acquisitions in the alternative asset management space, what do you believe makes the most sense for you kind of over the intermediate term? What types of firms and investments would you be looking at and most interested in? And do you expect there will be opportunities in this area in 2024?
Michael Nierenberg: There’s plenty of firms that are always out there for sale. What I would say is we have a business today in Sculptor. We really don’t need anything than performance. And again, performance will bring more AUM back to the platform. So we don’t need to buy anything. We are going to try to grow our credit business and our real estate business. The three pillars of Sculptor are real estate, credit and the multi-strat fund. We are going to grow those three different verticals. We’re going to grow them by performance. Performance has been great. That will bring in more AUM. The firm is extremely stable, great partner in Rithm, and we’re off to the races. And I don’t think we need anything more than that. If there is a platform that comes up that we think is highly accretive to the overall alt space in the way that we think about the world, of course, we’ll look at it.
It’s no different than Baron running the mortgage company and there’s the another mortgage at a for sale that we think is extremely attractive, of course, we’ll make a play on that. But right now, we have all the pieces in place to continue growing and putting up great returns for LPs. So unless something is extremely attractive, we’ll stay the course.
Crispin Love: Great. Thank you. I appreciate you taking my question.
Michael Nierenberg: Thank you.
Operator: This concludes our question-and-answer session. I’d like to turn the call back over to Michael Nierenberg for any closing remarks.
Michael Nierenberg: Thanks for everyone’s questions. Thanks for joining us this morning. As I said before, super excited where we are overall as a firm and look forward to continuing to hopefully put up great results for our LPs and shareholders going forward and look forward to updating you along the way. Have a great day. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect.
