A year-and-a-half in the past, for causes finest identified to himself (or maybe not), Dan Och got down to destroy the hedge fund he’d based and constructed into an business powerhouse for at the very least the third time. And in contrast to the primary time—when he oversaw a scheme to bribe as many African politicians and potentates as potential—and the second—when he threw a temper-tantrum and tore his personal carefully-arranged succession plan out of spite—this time he actually appeared to imply it. When the $34 billion hedge fund previously named for him quite airlessly dismissed his issues—pretended or in any other case—in regards to the company governance he’d arrange or about how a lot his much-hated former waterskiing teacher and delayed successor was being paid or about maximizing the shareholder worth he’d systematically destroyed, he determined to double down by dredging up pretty well-discredited rape allegations in opposition to the previous waterskiing instructor-turned CEO, regardless of having identified about these allegations whereas selling Jimmy Levin and finally naming him his inheritor.
Well, despite indications that Och had maybe thought higher of obliterating the creation that also homes a considerable chunk of his fortune, it seems {that a} billionaire scorned is not going to be denied his vengeance, no matter the associated fee.
Sculptor Capital Management, as soon as one of many world’s largest hedge funds, has agreed to be bought for $639mn in a takeover that ends a bitter struggle between its billionaire founder Daniel Och and his former protégé Jimmy Levin.
For context, that’s solely about $100 million much less that Sculptor has paid to make the entire disagreeable bribery scandal go away, or about 4 occasions the compensation bundle for Levin that Och threw a match over, or about six occasions the worth of the condominium Och doesn’t use, or—most notably, maybe—lower than a tenth of what the previous Och-Ziff was value when it went public 16 years in the past.
But for Och, little question, the vital factor is that he gained, and that insufficiently grateful upstart little twerp Levin will lastly be out of the job Och picked him to do. Or did he, and can he?
The fund can be held as an unbiased subsidiary of Rithm Capital, with its administration and funding employees remaining in place, the businesses mentioned on Monday. Levin will proceed to steer Sculptor’s funding operations and report back to Rithm’s chief government Michael Nierenberg.
According to securities filings, Levin stood to make greater than $40mn from Monday’s sale had Rithm not determined to have him proceed in his present function. Levin has voting energy over greater than 14mn Sculptor shares value about $150mn, in response to filings.
Hedge fund Sculptor agrees $639mn takeover by Rithm Capital [FT]
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