Publicly traded real estate and financial services industries-focused asset manager Rithm Capital has agreed to buy Sculptor Capital Management for $639 million.
The deal follows the reported resolution of a legal dispute last November between Sculptor (formerly Och Ziff) and founder Dan Och and other senior executives who had sued the company over the pay of CEO Jimmy Levin.
The deal valuation includes an $11.15 per share paid for Sculptor, which has $34 billion in AUM across real estate, credit and multi-strategy hedge funds.
The transaction is expected to close in the fourth quarter of 2023.
Upon completion of the transaction, Sculptor will operate as a subsidiary of Rithm and will continue to be led by Levin, as CIO and executive managing partner, reporting to Michael Nierenberg, chief executive officer, president, and chairman of Rithm.
Sculptor will continue to operate as is, officials announced. Sculptor’s investment and leadership teams will continue in their roles and certain members of Sculptor leadership have agreed to vote shares held by them, representing an aggregate of approximately 26% of the outstanding Sculptor voting shares, in favor of the transaction.
“We are extremely pleased about the opportunity to combine with Rithm to capitalize on the growing opportunity set we see in our business,” said Levin. “We are excited to leverage this combination to continue to execute on our mission of providing our fund investors with attractive investment returns. We have long sought a partner with the stable capital structure, culture and vision to help unlock the potential for our platform to deliver more and greater value to our fund investors.”
“Sculptor has a tremendous global investment platform, and we believe the combination of both our businesses will continue to deliver great long-term value for shareholders and fund investors alike,” said Rithm’s Nierenberg in a statement.
Sculptor’s AUM will be coupled with Rithm’s $7 billion of permanent equity capital and over $30 billion balance sheet. The deal is expected to provide the ability to augment existing Sculptor business by seeding new funds and strategies and leveraging existing infrastructure to launch complementary funds, officials added.