Veteran Banker Stephen Scherr Makes a Comeback on Wall Street with Pretium
In a significant move, former Goldman Sachs CFO Stephen Scherr is joining Pretium, a leading investor in US single-family homes, as co-president. Scherr will share the top post with Jon Pruzan, former Morgan Stanley CFO, who joined Pretium last year. This strategic hire marks a significant milestone in Pretium’s growth journey, as the firm seeks to expand its presence in the residential real estate market.
Pretium’s founder, Don Mullen, emphasized the need for a strong leadership team, stating, “I need people around me who can run the place if I get hit by a bus.” Mullen, who has built Pretium into a $55 billion investment firm, believes that bringing on experienced leaders like Scherr and Pruzan will enable the firm to grow in a “reasoned and mature way.”
Scherr, 60, spent most of his career at Goldman Sachs, serving as CFO for three years until 2021. He then led car-rental company Hertz Global Holdings Inc. before stepping down in March. His return to finance with Pretium marks a new chapter in his career, focusing on the rapidly evolving residential real estate market.
Pretium has grown significantly since its inception, amassing a portfolio of nearly 100,000 rental homes and expanding into new areas, including apartment buildings and home loans. The firm is well-positioned to capitalize on opportunities in the multifamily market, where loan maturities and supply gluts present challenges for landlords and lenders.
As Pretium continues to grow, it faces scrutiny from lawmakers and the public, who argue that institutional investors are exacerbating the affordable housing crisis. Mullen acknowledges these concerns, stating, “We should be part of the solution, even if we are seen by some as part of the problem.” He notes that Pretium has worked with mayors to address the housing challenge.
Scherr and Pruzan, who have known each other for years, will work together to drive Pretium’s growth strategy. They see significant opportunities in private credit, particularly in construction lending, which has declined at banks in recent years. According to Pruzan, “Banks are becoming less relevant in certain lending spaces… The next private-credit market is going to be around residential real estate. The opportunity set is huge.”
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