Real Estate, Financial Services-Focused Rithm to Buy Sculptor for $639M

Rithm Capital Corp., an asset manager focused on the real estate and financial services industries, will acquire Sculptor Capital Management Inc., a global alternative asset manager with $34 billion in assets under management, for approximately $639 million.

Rithm will pay $11.15 per share in cash, an 18% premium over Sculptor’s closing price on Friday, or Sculptor shareholders can choose to roll over their shares into partnership units in one or more Rithm subsidiaries.

Sculptor will operate as a subsidiary of Rithm and will continue to be led by Jimmy Levin, as executive managing partner, reporting to Michael Nierenberg, Rithm CEO.

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.

“Sculptor’s $34 billion of assets under management coupled with Rithm’s $7 billion of permanent equity capital and $30 billion-plus balance sheet creates a world-class asset management business,” said Rithm Capital CEO Michael Nierenberg.

The deal, which is expected to close in the fourth quarter, is expected to be neutral to Rithm’s 2024 earnings and accretive in 2025.

Rithm recently acquired $1.4 billion worth of unsecured personal loans from Goldman Sachs‘ Marcus business unit. Rithm bought the portfolio at a discount, Nierenberg told Bloomberg.