Rithm Ups Offer to $676M for Sculptor Takeover

Rithm Capital and Sculptor Capital Management have agreed to revised terms for a takeover of the $34 billion hedge fund after the real estate-focused investment manager increased its bid.

Rithm will buy Sculptor for $12 per share, up from its prior offer of $11.15 per share disclosed on July 24, in a $676 million acquisition.

The agreement comes mere days after Rithm was reported to have abandoned plans for a better offer after Sculptor founder Daniel Och, who remains one of the company’s largest shareholders, described a rival plan led by a consortium of investors including Boaz Weinstein, Bill Ackman, Marc Lasry, and Jeff Yass as “more attractive.”

Bloomberg reported earlier this month that a group led by Weinstein had boosted its earlier offer to at least $13 per share and modified some clauses to improve the deal’s chances of completion.

Sculptor, originally known as Och-Ziff, has been the subject of a protracted takeover battle, with Daniel Och a staunch opponent of Rithm’s initial $639 million offer.

The transaction, which is expected to close during the fourth quarter, brings to Rithm Sculptor’s range of investments, including real estate, credit and multi-strategy.

“We remain thrilled to partner with Sculptor and are confident this combination will deliver long-term value for stockholders and fund investors alike by bringing together two talented teams and platforms to create a superior asset management business,” said Michael Nierenberg, chairman, CEO, and president of Rithm Capital.