Sculptor Capital Management

Last updated
Sculptor Capital Management
FormerlyOch-Ziff Capital Management Group
Company type Subsidiary
NYSE: SCU (2007-23)
ISIN US67551U1051  OOjs UI icon edit-ltr-progressive.svg
Industry Hedge funds
Founded1994;30 years ago (1994)
Founder Daniel Och
HeadquartersSolow Building
New York City, New York, United States
Key people
AUM US$34 billion (2023) [2]
Owner
Number of employees
343 (2022) [3]
Website sculptor.com

Sculptor Capital Management (formerly Och-Ziff Capital Management Group) is an American global diversified alternative asset management firm. [4] [5] [6] They are one of the largest institutional alternative asset managers in the world. [5]

Contents

The company operates multiple investment strategies, including multi-strategy, credit and real estate. [7] It has nearly 400 employees worldwide including offices in New York City, London, Hong Kong, Mumbai, and Shanghai. [7] [8] [9]

On November 17, 2023, Rithm Capital completed the purchase of Sculptor Capital Management for approximately $719.8 million. [10]

Structure

In 2021, Jimmy Levin was appointed CEO of the company. [11] [12] The firm is managed by the Partner Management Committee of seven executives. [11]

The company manages multi-strategy funds, dedicated credit funds, including opportunistic credit funds and Institutional Credit Strategies products, real estate funds and other alternative investment vehicles, including managing collateralized loan obligations. [6] [7] [8] The company manages $11.4 billion in multi-strategy funds, $6.4 billion in an opportunistic credit fund, $15.2 billion in institutional credit strategies, and $4.3 billion in real estate funds. [13]

History

The firm was founded as Och-Ziff in 1994 by Daniel Och with financial support from the Ziff family, founders of Ziff Davis Media. The company completed an initial public offering in 2007. The firm was one of the few hedge funds and private equity companies that completed IPOs before the 2007–2008 financial crisis. [14] Also in 2007, it became a founding member of the Hedge Fund Standards Board which sets a voluntary code of standards of best practice endorsed by its members. [15] [16]

In September 2016, the firm entered into settlement agreements with the United States Securities and Exchange Commission (SEC) and Department of Justice (DOJ), ending a five-year investigation into violations of the Foreign Corrupt Practices Act for allegedly paying bribes to government officials in several African nations. As part of the deferred prosecution agreement that settled civil and criminal charges, the firm agreed to pay a $413 million fine. The African subsidiary of the firm also pleaded guilty to one count of conspiracy. Och was charged by the SEC with causing a books and record violation and paid $2.2m in disgorgement as part of the settlement. [17] After the settlement, the company restructured its leadership. In March 2019, founder and then-Chairman Dan Och stepped down, and in September 2019, the firm rebranded as Sculptor Capital Management. [18]

In January 2018, Michael Cohen, former head of Och Ziff's European operations, was charged with fraud relating to activities of the company in Africa. He was charged with ten counts of fraud including investment adviser fraud and conspiracy to commit wire fraud while employed by Och Ziff. [19] [20] The SEC sued Michael Cohen as part of their probe into Och Ziff, specifically relating to an Och Ziff bribery scheme in the Democratic Republic of Congo, Chad and Libya, to win business for the company. [21]

On September 12, 2019, the company changed its name from Och-Ziff Capital Management to Sculptor Capital Management. [22] On May 15, 2019, Cohen pled guilty to one count of making false statements to the DOJ and was sentenced to three months; the other charges against him by the DOJ were dismissed. [23]

As of December 2021, the firm has $38.1 billion in assets under management. [3] : 67 

In January 2021, Sculptor became a signatory of the UNPRI as an investment manager. [24] Since the PRI's founding in 2006, various concerns have been raised over whether or not there is sufficient reporting and accountability among the signatories for membership to be meaningful, though in 2020 the PRI leadership finally began removing firms who did not meet the minimum requirements. [25] [26]

In July 2023, Sculptor agreed to be sold to real estate investment firm Rithm Capital for approximately $639 million. The next month, Sculptor received an unsolicited bid from a consortium of hedge funds led by Saba Capital Management along with Pershing Square Capital Management and Avenue Capital Group. [2] Despite the higher bid, Sculptor rejected the offer based on the terms of funding the acquisition. [27]

In October 2023, Rithm Capital increased its bid to $720 million and gained the support of owner Daniel Och to accept the bid. On November 17, Rithm Capital completed the purchase of SCM for approximately $719.8 million.

See also

Related Research Articles

<span class="mw-page-title-main">Economy of Guinea</span>

The economy of Guinea is dependent largely on agriculture and other rural activities. Guinea is richly endowed with good minerals, possessing an estimated quarter of the world's proven reserves of bauxite, more than 1.8 billion tonnes of high-grade iron ore, significant diamond and gold deposits, and undetermined quantities of uranium. In 2021, Guinea was the world's biggest exporter of Aluminium Ore 2021 trade surplus was $4.3B.

A hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to improve investment performance and insulate returns from market risk. Among these portfolio techniques are short selling and the use of leverage and derivative instruments. In the United States, financial regulations require that hedge funds be marketed only to institutional investors and high-net-worth individuals.

<span class="mw-page-title-main">D. E. Shaw & Co.</span> U.S.-based investment management firm

D. E. Shaw & Co., L.P. is a multinational investment management firm founded in 1988 by David E. Shaw and based in New York City. The company is known for developing complicated mathematical models and computer programs to exploit anomalies in financial markets. As of December 1, 2023, D. E. Shaw has $60 billion in assets under management, including alternative investments and long strategies.

<span class="mw-page-title-main">Bill Ackman</span> American billionaire hedge fund manager born 1966

William Albert Ackman is an American billionaire hedge fund manager who is the founder and chief executive officer of Pershing Square Capital Management, a hedge fund management company. His investment approach has made him an activist investor. As of June 2024, Ackman's net worth was estimated at $9.3 billion by Forbes.

<span class="mw-page-title-main">TPG Angelo Gordon</span> American investment management company

TPG Angelo Gordon is a global alternative investment manager founded in 1988 by John Angelo and Michael Gordon who together ran the arbitrage department of L.F. Rothschild in the 1980s. The firm focuses on four main investment disciplines: credit, real estate, private equity, and multi-strategy.

<span class="mw-page-title-main">GLG Partners</span>

Man GLG is a discretionary investment manager and a wholly owned subsidiary of British alternative investment manager Man Group plc. It is a diversified and multi-strategy fund manager that operates strategies including equity long-short funds, convertible arbitrage funds, emerging market funds and long-only mutual funds. The firm is also a founding member of the Hedge Fund Standards Board and a signatory of the Principles for Responsible investment. As of 2022, Man GLG had $35.4 billion assets under management.

Harbinger Capital Partners is a private hedge fund based in New York City, New York, founded by Philip Falcone. Harbinger is a highly diversified multi-strategy hedge fund. Notable investments have included sub-prime mortgages in the United States and the United Kingdom, such as HBOS, and LightSquared, a wireless communications company that filed bankruptcy in 2012.

<span class="mw-page-title-main">Paulson & Co.</span> American investment management firm

Paulson & Co., Inc. is a family office based in New York City. Previously, it was a hedge fund established by John Paulson in 1994. Specializing in "global mergers, event arbitrage, and credit strategies", the firm had a relatively low profile on Wall Street until its hugely successful bet against the subprime mortgage market in 2007. At one time the company had offices in London and Dublin.

<span class="mw-page-title-main">GCM Grosvenor</span> American alternative asset management firm

GCM Grosvenor is an American alternative asset management firm, with approximately $76 billion in assets under management and approximately 530 professionals as of 2023.

International Investment Group (IIG) is an American financial institution that specializes in short-term trade finance and commercial finance with a focus on emerging markets. Through its affiliate IIG Capital it provides financing to small and medium-sized merchants, traders and processors with a need for supply chain financing.

<span class="mw-page-title-main">Davidson Kempner Capital Management</span> Global institutional alternative investment management firm

Davidson Kempner Capital Management LP is a global institutional alternative investment management firm with over $36 billion in assets under management. Davidson Kempner is headquartered in New York City, with additional offices in London, Hong Kong, Dublin, Philadelphia, Shenzhen and Mumbai. The firm is led by Anthony A. Yoseloff who serves as Executive Managing Member and Chief Investment Officer.

<span class="mw-page-title-main">S.A.C. Capital Advisors</span> Group of hedge funds

SAC Capital Advisors was a group of hedge funds founded by Steven A. Cohen in 1992. The firm employed approximately 800 people in 2010 across its offices located in Stamford, Connecticut and New York City, and various offices. It reportedly lost many of its traders in the wake of various investigations by the Securities and Exchange Commission (SEC). In 2010, the SEC opened an insider trading investigation of SAC and in 2013 several former employees were indicted by the U.S. Department of Justice. In November 2013, the firm itself pleaded guilty to insider trading charges and paid $1.2 billion in penalties. The firm shrank after returning the vast majority of its outside investor capital. Point72 Asset Management was established as a separate family office in 2014. SAC ceased to exist as a separate entity in 2016. Point 72, essentially the continuation of SAC, manages 30 Billion as of 2023.

Assured Investment Management is an institutional asset management firm, with a heritage in credit strategies. The firm manages approximately $15 billion as of 2022.

<span class="mw-page-title-main">Mining industry of Guinea</span>

The mining industry of Guinea was developed during colonial rule. The minerals extracted consisted of iron, gold, diamond, and bauxite. Guinea ranks first in the world in bauxite reserves and 6th in the extraction of high-grade bauxite, the aluminium ore. The mining industry and exports of mining products accounted for 17% of Guinea's gross domestic product (GDP) in 2010. Mining accounts for over 50% of its exports. The country accounts for 94% of Africa's mining production of bauxite. The large mineral reserve, which has mostly remained untapped, is of immense interest for international firms.

Saba Capital Management (Saba) is a credit relative value focused hedge fund firm established in 2009. It also has strategies in tail hedge, closed-end funds and SPACs.

York Capital Management is a global institutional investment management firm with approximately $18.5 billion in assets under management as of June 2019. The firm was founded in 1991 by Jamie Dinan.

Visium Asset Management LP was an American multi-strategy hedge fund and private equity firm. It began as a healthcare-focused fund, founded in 2005 by Jacob Gottlieb. In 2016, three of the company's traders were indicted by United States federal authorities for securities fraud. One of the accused employees killed himself days after he was indicted. Visium subsequently liquidated several of its funds and wound down operations.

Maso Capital Partners Limited is a Hong Kong-based hedge fund that was founded and is run by Manoj Jain and Sohit Khurana. The fund is registered in the Cayman Islands under Cayman Islands company law and headquartered in Central, Hong Kong.

<span class="mw-page-title-main">HPS Investment Partners</span> American credit investment firm

HPS Investment Partners (HPS) is an American investment firm headquartered in New York City. The firm focuses on investments in private credit and public credit as well as private equity and real assets. Outside the United States, the firm also has offices in Europe, the Middle East and Asia-Pacific.

<span class="mw-page-title-main">Rithm Capital</span> American investment management company

Rithm Capital (Rithm) is an American investment management company headquartered in New York that focuses on real estate and alternative investments.

References

  1. ↑ "Sculptor Capital Management Profile". Bloomberg. 23 February 2022.
  2. 1 2 Zuckerman, Gregory (August 20, 2023). "Wall Street All-Stars Including Weinstein, Ackman Bid for Hedge Fund". The Wall Street Journal .
  3. 1 2 "Sculptor Capital Management 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. March 3, 2023.
  4. ↑ "Goodbye Och-Ziff. Hello, Sculptor. Hedge Fund Tries New Name". Bloomberg. 12 August 2019. Retrieved 12 August 2019.
  5. 1 2 Lessambo, Felix (November 8, 2011). Fundamentals of Hedge Funds: Alternative Investment Vehicles. Dorrance Publishing. p. 61. ISBN   9781434975959.
  6. 1 2 "Company Profile for Och-Ziff Capital Management Group LLC (OZM)". Bloomberg. Retrieved 3 June 2013.
  7. 1 2 3 OZ Management (company website)
  8. 1 2 Form 10-Q filing as with the U.S. Securities and Exchange Commission. December 31, 2015
  9. ↑ Svea Herbst-Bayliss (October 26, 2015). "Hedge fund Och-Ziff opens Houston office to focus on energy bets". Reuters.
  10. ↑ "Rithm Capital Corp. Completes Acquisition of Sculptor Capital Management". Sculptor Capital Management. Retrieved 2023-12-06.
  11. 1 2 "Sculptor Capital Management leadership". Sculptor Capital Management.
  12. ↑ Whyte, Amy (11 June 2020). "Jimmy Levin Finally Ascends to CEO at Sculptor Capital". Institutional Investor.
  13. ↑ Parmar, Hema (January 7, 2020). "Ken Griffin's Citadel Beats Steve Cohen's Point72 With 19% Gain in 2019". www.bloomberg.com.
  14. ↑ Zuill, Lilla (2007-11-14). "Update 2 Och Ziff IPO raises $1.15 billion". reuters.
  15. ↑ "Hedge Fund Standards Board". www.hfsb.org. Retrieved 2017-04-25.
  16. ↑ "SBAI History".
  17. ↑ Alexandra Stevenson (September 29, 2016). "Och-Ziff to Pay Over $400 Million in Bribery Settlement". The New York Times.
  18. ↑ Chris Butera (August 14, 2019). "Och-Ziff Who? Hedge Fund Firm to Change Name in September". Chief Investment Officer Magazine .
  19. ↑ "Michael Cohen, Once of Och-Ziff, Charged With Fraud by U.S." Bloomberg.com. 2018-01-03. Retrieved 2018-01-23.
  20. ↑ Dye, Jessica (3 January 2018). "Former Och-Ziff executive faces criminal fraud charges". Financial Times. Retrieved 2018-01-23.
  21. ↑ "Two Ex-Och-Ziff Executives Accused by SEC in Bribery Scheme". Bloomberg.com. 2017-01-26. Retrieved 2018-01-23.
  22. ↑ LLC, Och-Ziff Capital Management Group (2019-09-12). "Och-Ziff Capital Management Changes Name to Sculptor Capital Management". GlobeNewswire News Room (Press release). Retrieved 2022-08-09.
  23. ↑ "Former Och-Ziff Executive Sentenced to Prison". The Wall Street Journal. November 20, 2019.
  24. ↑ "Sculptor Capital Management, Inc". PRI. Retrieved 2022-06-03.
  25. ↑ Wheelan, Hugh (2012-10-31). "Editorial Comment: the UN PRI is facing major test of credibility". Responsible Investor. Retrieved 2022-06-03.
  26. ↑ "EXCLUSIVE-Five groups ousted from U.N.-backed responsible investment list". Reuters. 2020-09-28. Retrieved 2022-06-03.
  27. ↑ Choudhury, Ambereen (2023-08-21). "Hedge Fund Sculptor Rejects Unsolicited Bid by Weinstein, Ackman". Bloomberg News.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.