- via Liz Hoffman and Peter Rudegeair at the WSJ
- Founded in 2007, Genesis Capital lends to investors looking to buy, renovate, and quickly sell single-family homes. Growth has been speedy - the company lent $1B last year, up from $50M three years earlier. Behind that speedy growth has been funding, which Oaktree Capital (NYSE:OAK) has supplied since 2014. Deeper pockets are on the way.
- Goldman Sachs (GS) is buying, according to the report, with an official announcement maybe coming this week.
- Goldman's traditional sources of revenue (particularly trading) are in what could be secular decline, so the bank has been busy trying to drum up business on Main Street - including taking in small personal deposits and making small business and consumer loans. Next stop residential mortgages?
- Update at 2:00 ET: Official announcement