Rithm Capital lands $639 million deal to buy Sculptor Capital Management

"This transaction is transformational," says CEO

Rithm Capital lands $639 million deal to buy Sculptor Capital Management

Rithm Capital, the parent company of mortgage servicer Newrez, has agreed to acquire global alternative asset manager Sculptor Capital Management for approximately $639 million in cash.

Sculptor has $34 billion in assets under management (AUM) diversified across the real estate, credit and multi-strategy investing sectors. According to its news release, the deal will “broaden Rithm’s product offerings and investment management capabilities.”

“This transaction is transformational for Rithm,” said Michael Nierenberg, chairman, CEO and president of Rithm Capital. “Sculptor’s $34 billion of AUM, coupled with Rithm’s $7 billion of permanent equity capital and $30+ billion balance sheet, creates a world-class asset management business. We are very excited to bring together two organizations with strong track records, excellent management teams, and seasoned investment professionals. 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.”

Sculptor will operate as a subsidiary of Rithm and continue to be led by Jimmy Levin as chief information officer and executive managing partner and will report to Nierenberg.

The move comes after Rithm announced plans to go public this year as it pivots to being an alternative asset manager.

Levin commented: “We are extremely pleased about the opportunity to combine with Rithm to capitalize on the growing opportunity set we see in our business. 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.”

“We are thrilled to deliver a great outcome for Sculptor shareholders and an opportunity for Sculptor to continue to build on its exceptional platform,” said Marcy Engel, Sculptor’s board of directors chairperson. “We look forward to watching the combined company grow its already strong position as a leader in the alternative asset management space.”

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