Jason Weaver: All right. Thank you for that color.
Michael Nierenberg: Thank you.
Operator: The next question comes from Trevor Cranston with JMP Securities. Please go ahead.
Trevor Cranston: Great. Thanks. Good morning. Looking at Slide 16, you guys have made quite a bit of progress on the servicing cost per loan. As you look forward post-SLS in particular, can you talk about sort of how you see that evolving? And if you have sort of a target where you think you can get to on the efficiency of the servicing platform?
Baron Silverstein: Yeah. I mean, look, there’s a fair amount of operating leverage that we continue to get from the consolidation that we’ve done and the consolidation of the different Rithm subservicing that we moved into the Newrez ecosystem. We’re going to get that operating leverage with the acquisition of SLS. Michael briefly talked about that — the time period of when we can move that in. We think it’s going to be very quick. They’re going to come on to our proprietary servicing system, utilizing our processes. And they have — the third-party business is obviously very strategic for us in bringing those clients on to our platform, some of which we already have relationships with that we’re going to continue to grow and others that we’re — are new relationships.
But I would say that it’s very seamless or from a cost perspective and overall efficiency, I talked about this before. That is one of my top priorities to continue to drive costs down. You see the cost per loan here that continues to go down. Obviously, that’s just all about operating leverage in our benchmark. And we think we’re the best in the business. We really do.
Trevor Cranston: Got it. Okay. That’s helpful. And then a follow-up on the question about opportunities on the commercial real estate side. Can you talk about sort of how you think about how much capital you have available to pursue those opportunities on Rithm’s balance sheet versus pursuing the opportunities potentially in managed funds? Thanks.
Michael Nierenberg: I think that on the managed funds, that business will continue to run itself. Steve Orbuch and Nick Hecker and their team will continue to run their business the way that they do. We look at some one-off stuff here on the Rithm balance sheet that this is not where one division is going to compete with the other. They do very, very different things than I think, for example, I brought up this debt deal that we did. They do very different things than I think what you’re going to see on the Rithm balance sheet. If you recall, we — about — at the end of ’22, we brought in a world-class group of folks at — which was — which is named GreenBarn, David Welsh and Dave Schonbraun and their team who have been instrumental in some of the stuff that we’ve looked at here.
So I think you’re going to see some investment on the Rithm balance sheet. Clearly, we want to grow the funds business, and Steve and Nick will continue to do what they do and the results stand for themselves. So it will be a different type of investing business. And I think what you see there, there could be times when we partner, no different than, I think, what you’d see at — for example, at Blackstone and some of their private funds and what they do between the private funds and their REIT.
Trevor Cranston: Okay. That makes sense. Thank you.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Michael Nierenberg, CEO, for any closing remarks.
Michael Nierenberg: Thanks for joining. A lot of good dialogue, some good questions. Any follow-up, you know how to reach us. Appreciate the support and have a great day. Thanks, everyone.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
