Rithm Capital to acquire hedge fund Sculptor for $639 million

Sculptor Capital Management

24/07/2023 23:38

NEW YORK, July 24 (Reuters) - Asset manager Rithm
Capital  RITM.N  has agreed to acquire hedge fund firm Sculptor
Capital Management  SCU.N  for $639 million, the companies said
in a statement on Monday.
    Rithm will pay $11.15 per class A share of Sculptor, which
represents a premium of 18% over Sculptor's closing price on
Friday.
    Sculptor, once known as Och-Ziff Capital Management, had
been exploring a sale since last year, amid a legal battle with
its founder, Daniel Och.
    Och accused his former firm in a lawsuit of letting Chief
Executive James Levin wield power over the board to extract
"ever-escalating" pay despite subpar performance. Sculptor in
August 2022 called Och's filing "misleading and full of
falsehoods."
    Rithm's chairman and chief executive officer, Michael
Nierenberg, said the deal is "transformational." The transaction
will allow the company to expand beyond real estate and
financial services and roughly double its assets under
management to over $60 billion. Rithm also has $7 billion of
capital.
    Sculptor, which manages credit, private real estate equity
and multi-strategy funds, will become a subsidiary of Rithm and
continue to be led by Levin as chief investment officer.
    In a note to clients, BTIG said the deal broadens Rithm's
"investment stance with the flexibility to put assets either on
its own balance sheet as a direct investor, or leverage its
asset management capabilities with third-party capital."    
    
     

 (Reporting by Carolina Mandl in New York
Editing by Matthew Lewis)
 ((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))