Sculptor Capital fought its own founder, then sold itself for a fraction of its peak value

Och-Ziff Capital Management, founded by Daniel Och, managed nearly $50 billion at its peak. In 2016 the firm pleaded guilty to a bribery conspiracy involving officials in the Democratic Republic of Congo and Libya, and agreed to pay more than $213 million in criminal penalties plus a separate SEC settlement, on top of a later $137 million restitution plan for defrauded investors. The scandal triggered years of client redemptions; the firm renamed itself OZ Capital in 2017 and Sculptor Capital Management in 2019 while trying to outrun its own history.

Och stepped down as CEO in January 2018 and the board chose an outsider, Robert Shafir, over Jimmy Levin, then co-chief investment officer and a longtime Och family associate. Levin became CEO in 2021 anyway, and in December of that year the board approved him a pay package worth more than $145 million. Och contested the award and the succession process, seeking company records and later suing over whether directors had violated their duties. Sculptor's flagship fund underperformed peers and its shares fell 56% in 2022 alone, sliding from $20.02 in December 2021 to $9.42 by July 2023.

In July 2023, with assets under management down to roughly $34 billion, Sculptor's board agreed to sell the firm to mortgage-focused REIT Rithm Capital for $11.15 a share, about $639 million. Och argued the price undervalued the company and, in August, asked the board to release rival bidders from non-disclosure agreements. A consortium led by Saba Capital's Boaz Weinstein, joined by Bill Ackman, Jeff Yass and Marc Lasry, offered $13 a share. Och sued Sculptor and Rithm in October, alleging the board favored a lower bid to protect Levin's job and pay.

Facing the competing offer and Och's litigation, Rithm raised its bid to $12.70 a share, valuing Sculptor at about $719.8 million, a 13.9% increase over the original terms. Shareholders approved the amended deal on November 16, 2023, and the acquisition closed the next day, delisting Sculptor from the New York Stock Exchange and folding it into Rithm's push to become a diversified asset manager.