The firms stated in a statement on Monday that asset management company Rithm Capital has reached an agreement to pay $639 million to purchase the hedge fund company Sculptor Capital Management.
Each class will cost Rithm $11.15. An increase of 18% above Sculptor’s Friday closing price is represented by a share of the company.
Since last year, as part of a legal dispute with its founder, Daniel Och, the Sculptor, formerly known as Och-Ziff Capital Management, had been considering a sale.
Och sued his previous company, alleging that they had allowed Chief Executive James Levin to utilize his influence over the board to demand “ever-escalating” remuneration despite substandard performance. By August 2022, Sculptor had criticized Och’s filing as “misleading and full of falsehoods.”
Michael Nierenberg, chairman and CEO of Rithm, referred to the transaction as “transformational.” The company will be able to diversify outside real estate and financial services thanks to the purchase, virtually doubling its assets under control to more than $60 billion. Additionally, Rithm has $7 billion in funding.
A subsidiary of Rithm, Sculptor will continue to be run by Levin in his capacity as chief investment officer and manage credit, private real estate equity, and multi-strategy funds.
In a note to clients, BTIG stated that the purchase 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.”
