Rithm Capital has signed a definitive agreement with Sculptor Capital Management, an alternative asset manager listed on the New York Stock Exchange (NYSE), to acquire the latter in a deal worth nearly $639m.

According to the terms of the agreement, Sculptor Capital Management’s Class A shareholders will receive cash consideration equal to $11.15 per share.

Moreover, in accordance with the Sculptor partnership agreements, the company’s operating partnership unit holders will receive the appropriate cash consideration, calculated at the $11.15 per share price.

The consideration of the deal represents a premium of 18% over the closing price of Sculptor Capital Management’s Class A shares on 21 July 2023.

Based in the US, Sculptor Capital Management invests across credit, real estate, and multi-strategy platforms across major geographies.

The firm has nearly $34.2bn in assets under management.

Sculptor Capital Management chief investment officer and CEO Jimmy Levin said: “We are excited to leverage this combination to continue to execute on our mission of providing our fund investors with attractive investment returns.

“We have long sought a partner with the stable capital structure, culture and vision to help unlock the potential for our platform to deliver more and greater value to our fund investors.”

Following the completion of the deal, Sculptor Capital Management will function as a subsidiary of Rithm Capital.

Founded in 2013, Rithm Capital is an NYSE-listed asset manager specialising in the real estate and financial services sectors.

The company’s investments in operating entities include origination and servicing platforms held through its fully-owned subsidiaries, namely Newrez, Caliber Home Loans, and Genesis Capital.

Besides, Rithm Capital invests in affiliated businesses that offer residential and commercial real estate related services.

Rithm Capital chairman, CEO and president Michael Nierenberg said: “This transaction is transformational for Rithm. Sculptor’s $34 billion of AUM coupled with Rithm’s $7bn of permanent equity capital and $30+ billion balance sheet creates a world-class asset management business.”

Subject to customary conditions, including Sculptor Capital Management’s shareholders’ approval and regulatory approvals, the transaction is anticipated in Q4 2023.