Hedge fund manager Bill Ackman / Facebook
Pershing Square Capitol’s Bill Ackman and Saba Capital founder Boaz Weinstein are part of a group of investors making a rival bid to takeover Sculptor Capital Management. Their group, which includes Avenue Capital’s Marc Lasry, made a $12 per share bid for the firm.
The Bill Ackman and Boaz Weinstein bid competes with New York-based real estate group Rithm Capital. In July, Rithm made an $11.15 per class A share offer, or $0.85 less per share.
But the higher per share price does not necessarily make this a better deal as Sculptor Capital Management explained.
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“Though this latest bid’s headline valuation is higher than the Rithm transaction, this proposal only includes committed financing for less than half of the amount required to consummate the transaction and underestimates the amount that would be necessary by several hundred million dollars,” said the firm in a statement.
“We have received an unsolicited proposal from a third party that had participated in the strategic alternatives process,” Sculptor Capital added. “This bidder has not demonstrated adequate committed funding for any of its bids.”
And Sculptor Capitol made it clear that the firm’s Board of Directors already unanimously approved the transaction with Rithm and has recommended that the Company’s stockholders vote to approve it as well. The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions, including receipt of approval from the Company’s stockholders, certain regulatory approvals, and receipt of certain consents.
Sculptor Capital is a global alternative asset manager providing a range of products across Multi-Strategy, Credit, and Real Estate. The firm says its investment model benefits from collaboration among our investment teams and brings to bear all of our diverse resources and perspectives.
Boaz Weinstein is an American hedge fund manager and founder of Saba Capital Management. He rose to prominence at Deutsche Bank in the early and mid 2000s with his credit default swap and capital structure arbitrage trading strategies. He then formed a proprietary trading group within Deutsche Bank. After leaving the bank in 2009, Weinstein started Saba Capital Management as a separate hedge fund. As of September 2022, Saba manages $4.8 billion in assets.
Weinstein was born in New York City in 1973. He attended Stuyvesant High School and the University of Michigan, where he graduated with a BA in Philosophy. After college, he joined Deutsche Bank as an analyst in the credit trading department. He quickly rose through the ranks and became a Managing Director at the age of 27.
According to his official bio, Bill Ackman is an SEC-registered investment adviser founded in 2003. Pershing Square is a concentrated research-intensive fundamental value investor in long and occasionally short investments in the public markets. Prior to forming Pershing Square, Mr. Ackman co-founded Gotham Partners Management Co., LLC, an investment adviser that managed public and private equity hedge fund portfolios. Prior to Gotham Partners, Mr. Ackman began his career in real estate investment banking at Ackman Brothers & Singer, Inc. Mr. Ackman received an MBA from the Harvard Business School and a Bachelor of Arts magna cum laude from Harvard College.
