Sculptor Capital Management (NYSE:SCU) shares are up in double digits today after the alternative asset manager agreed to be acquired by Rithm Capital Corp. (NYSE:RITM) for nearly $639 million. The latter manages assets primarily in the real estate and financial services space.
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Sculptor has $34 billion in assets under management (AUM), and its addition will significantly boost RITM’s permanent equity capital of $7 billion and $30+ billion balance sheet.
Importantly, the move expands RITM’s alternative asset capabilities while also broadening its product offerings. Additionally, the transaction will unlock growth capital for Sculptor with avenues to seed new funds and strategies as well.
Under the terms, Sculptor’s Class A investors will receive $11.15 per share in cash. The Boards of both companies have unanimously approved the transaction. The deal is expected to close in the fourth quarter of this year, and upon closing, Sculptor will become a subsidiary of RITM.
While Sculptor shares are up nearly 16%, RITM shares are up marginally at the time of writing. Overall, the Street has a $11.50 consensus price target on RITM alongside a Strong Buy consensus rating. Shares of the company have gained nearly 17.5% year-to-date.
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