| ☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the quarterly period ended June 30, 2022 | |||||
| or | |||||
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
| For the transition period from ________ to ________ | |||||
| Delaware | 26-0354783 | |||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
| Class A Shares | SCU | New York Stock Exchange | ||||||||||||
| Page | ||||||||
| PART I — FINANCIAL INFORMATION | ||||||||
| Item 1. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| PART II — OTHER INFORMATION | ||||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
2007 Offerings | Refers collectively to our IPO and the concurrent private offering of approximately 3.81 million Class A Shares to DIC Sahir Limited, a wholly owned indirect subsidiary of Dubai Holdings LLC. | |||||||
| Accrued but unrecognized incentive income | Accrued but unrecognized incentive income (“ABURI”) is the amount of incentive income accrued at the fund level on longer-term AUM that has not yet been recognized in our revenues. These amounts may ultimately not be recognized as revenue by us in the event of future losses in the respective funds. | |||||||
Annual Report | Our annual report on Form 10-K for the year ended December 31, 2021, dated February 25, 2022 and filed with the SEC | |||||||
| Advisers Act | Investment Advisers Act of 1940, as amended. | |||||||
| Assets Under Management | Assets Under Management (“AUM”) refers to the assets for which we provide investment management, advisory or certain other investment-related services. Specifically: a.AUM for our multi-strategy and opportunistic credit funds is generally based on the net asset value of those funds plus any unfunded commitments, if applicable. AUM is reduced for unfunded commitments that will be funded through transfers from other funds. b.AUM for Institutional Credit Strategies is generally based on the amount of equity outstanding for CLOs and CBOs (during the warehouse period) and the par value of the collateral assets and cash held (after warehouse period). For aircraft securitization vehicles, AUM is based on the adjusted portfolio appraisal values for the aircraft collateral within the securitization. AUM is reduced for any investments in these CLOs and securitization vehicles held by our other funds. AUM also includes the net asset value of other investment vehicles within this strategy. c.AUM for our real estate funds is generally based on the amount of capital committed by our fund investors during the investment period and the amount of actual capital invested for periods following the investment period. AUM is reduced for unfunded commitments that will be funded through transfers from other funds. d.AUM for our special purpose acquisition company (“SPAC”) sponsored by us includes the proceeds raised in the initial public offering that are currently held in a trust for use in a business combination. AUM includes amounts that are not subject to management fees, incentive allocation or other amounts earned on AUM, including without limitation, investments by the Company, its executive managing directors, employees and certain other related parties. Our calculation of AUM may differ from the calculations of other asset managers, and as a result, may not be comparable to similar measures presented by other asset managers. Our calculations of AUM are not based on any definition set forth in the governing documents of the investment funds and are not calculated pursuant to any regulatory definitions. | |||||||
Class A Shares | Our Class A Shares, representing Class A common stock of Sculptor Capital Management, Inc., which are publicly traded and listed on the NYSE. | |||||||
Class B Shares | Class B Shares of Sculptor Capital Management, Inc., which are not publicly traded, are currently held solely by our executive managing directors and have no economic rights but entitle the holders thereof to one vote per share together with the holders of our Class A Shares. | |||||||
CLOs | Collateralized loan obligations. | |||||||
the Company, Sculptor Capital, the firm, we, us, our | Refers, unless the context requires otherwise, to the Registrant and its consolidated subsidiaries, including the Sculptor Operating Group. | |||||||
| Consolidated Entities | Refers to funds, special purpose entities, investment vehicles and other similar structures for which the Company is required to consolidate in accordance with GAAP. | |||||||
| Distribution Holiday | The Sculptor Operating Partnerships initiated a distribution holiday (the “Distribution Holiday”) on the Group A Units, Group E Units and Group P Units and on certain RSUs and RSAs that will terminate on the earlier of (x) 45 days after the last day of the first calendar quarter as of which the achievement of $600.0 million of Distribution Holiday Economic Income is realized and (y) April 1, 2026. Holders of Group A Units, Group E Units and Group P Units and certain RSUs and RSAs, do not receive distributions during the Distribution Holiday. | |||||||
| Distribution Holiday Economic Income | Distribution Holiday Economic Income is the cumulative amount of Economic Income earned since October 1, 2018, less any dividends paid to Class A Shareholders or on the now-retired Preferred Units. Distribution Holiday Economic Income is a non-GAAP measure that is defined in the agreements of limited partnership of the Sculptor Operating Partnerships and is being presented to provide an update on the progress made toward the $600.0 million target required to exit the Distribution Holiday. | |||||||
Economic Income | Economic Income is a non-GAAP measure of pre-tax operating performance that excludes the following from our results on a GAAP basis: noncontrolling interests, equity based compensation expense, net of cash settled RSUs, depreciation and amortization expenses, components of our other income (loss), non-cash interest expense accretion on debt, and amounts related to consolidated entities, in addition, expenses related to incentive income profit-sharing arrangements are generally recognized at the same time the related incentive income revenue is recognized. The fair value of RSUs that are settled in cash to employees or executive managing directors, where the number of RSUs to be settled in cash is not certain at the time of grant, is included as an expense at the time of settlement. Where the number of RSUs to be settled in cash is certain on the grant date, the expense is recognized during the performance period to which the award relates. Similarly, deferred cash compensation is expensed in full during the performance period to which the award relates for Economic Income, rather than over the service period for GAAP. Further, impairment of right-of-use lease assets is excluded from Economic Income at the time the impairment is recognized for GAAP and the impact is then amortized over the lease term for Economic Income. Additionally, rent expense is offset by subrental income as management evaluates rent expenses on a net basis. | |||||||
Exchange Act | Securities Exchange Act of 1934, as amended. | |||||||
executive managing directors | The current executive managing directors of the Company, and, except where the context requires otherwise, also includes certain executive managing directors who are no longer active in our business. | |||||||
| Fee Paying Assets Under Management | Fee Paying Assets Under Management (“FP AUM”) refers to the AUM on which we earn management fees and/or incentive income. | |||||||
funds | The multi-strategy funds, dedicated credit funds, including opportunistic credit funds and Institutional Credit Strategies products, real estate funds and other alternative investment vehicles for which we provide asset management services, as well as the SPAC we sponsor. | |||||||
GAAP | U.S. generally accepted accounting principles. | |||||||
Group A Units | Refers collectively to one Class A operating group unit in each of the Sculptor Operating Partnerships. Group A Units are limited partner interests held by our executive managing directors. | |||||||
Group A-1 Units | Refers collectively to one Class A-1 operating group unit in each of the Sculptor Operating Partnerships. Group A-1 Units are limited partner interests held by our executive managing directors. | |||||||
Group B Units | Refers collectively to one Class B operating group unit in each of the Sculptor Operating Partnerships. Group B Units are limited partner interests held by Sculptor Corp. | |||||||
Group E Units | Refers collectively to one Class E operating group unit in each of the Sculptor Operating Partnerships. Group E Units are limited partner interests held by our executive managing directors. | |||||||
Group P Units | Refers collectively to one Group P operating group unit in each of the Sculptor Operating Partnerships. Group P Units are limited partner interests held by our executive managing directors. | |||||||
Institutional Credit Strategies | Our asset management platform that invests in performing credits, including leveraged loans, high-yield bonds, private credit/bespoke financing and investment grade credit via CLOs, aircraft securitization vehicles, collateralized bond obligations, the structured alternative investment solution, and other customized solutions. | |||||||
IPO | Our initial public offering of 3.6 million Class A Shares that occurred in November 2007. | |||||||
Longer-term AUM | AUM from investors that are subject to initial commitment periods of three years or longer. Investors with longer-term AUM may have less than three years remaining in their commitment period. This excludes AUM that had initial commitment periods of three years or longer and subsequently moved to shorter commitment periods at the end of their initial commitment period. | |||||||
NYSE | New York Stock Exchange. | |||||||
Partner Equity Units | Refers collectively to the Group A Units, Group E Units and Group P Units. | |||||||
| Preferred Units | One Class A cumulative preferred unit in each of the Sculptor Operating Partnerships collectively represented one “Preferred Unit.” Certain of our executive managing directors collectively owned 100% of the Preferred Units. We redeemed in full the Preferred Units in the fourth quarter of 2020, and as of December 31, 2020 and 2021 there were no Preferred Units outstanding. | |||||||
PSUs | Class A performance-based RSUs. | |||||||
Recapitalization | Refers to the recapitalization of our business that occurred in February 2019. As part of the Recapitalization, a portion of the interests held by our former executive management were reallocated to existing members of senior management. In addition, we restructured the previously outstanding senior debt and Preferred Units. | |||||||
Registrant | Sculptor Capital Management, Inc., a Delaware corporation. | |||||||
RSAs | Restricted Class A Shares. | |||||||
RSUs | Class A restricted share units. | |||||||
Sculptor Corp | Sculptor Capital Holding Corporation, a Delaware corporation. | |||||||
Sculptor Operating Group | Refers collectively to the Sculptor Operating Partnerships and their consolidated subsidiaries. | |||||||
Sculptor Operating Group Units | Refers collectively to Sculptor Operating Group A, B, E, and P Units. | |||||||
Sculptor Operating Partnerships | Refers collectively to Sculptor Capital LP, Sculptor Capital Advisors LP and Sculptor Capital Advisors II LP. | |||||||
SEC | U.S. Securities and Exchange Commission. | |||||||
Securities Act | Securities Act of 1933, as amended. | |||||||
| SPAC | Refers to special purpose acquisition company. | |||||||
Special Investments | Investments that we, as investment manager, believe lack a readily ascertainable market value, are illiquid or should be held until the resolution of a special event or circumstance. | |||||||
| June 30, 2022 | December 31, 2021 | ||||||||||
| (dollars in thousands) | |||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 192,578 | $ | 170,781 | |||||||
| Restricted cash | 7,238 | 7,289 | |||||||||
Investments (includes assets measured at fair value of $218,415 and $424,910, including assets sold under agreements to repurchase of $152,838 and $157,721 as of June 30, 2022 and December 31, 2021, respectively) | 336,993 | 583,622 | |||||||||
| Income and fees receivable | 25,421 | 193,636 | |||||||||
| Due from related parties | 30,158 | 28,037 | |||||||||
| Deferred income tax assets | 245,101 | 241,759 | |||||||||
| Operating lease assets | 81,382 | 85,735 | |||||||||
| Other assets, net | 107,047 | 77,091 | |||||||||
| Assets of consolidated entities: | |||||||||||
| Cash and cash equivalents | 25,650 | — | |||||||||
| Restricted cash and cash equivalents | 234,934 | 234,601 | |||||||||
| Investments of consolidated entities | 331,151 | — | |||||||||
| Other assets of consolidated entities | 4,171 | 5,304 | |||||||||
| Total Assets | $ | 1,621,824 | $ | 1,627,855 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Liabilities | |||||||||||
| Compensation payable | $ | 51,344 | $ | 246,261 | |||||||
| Unearned income and fees | 67,271 | 62,800 | |||||||||
| Tax receivable agreement liability | 178,759 | 195,752 | |||||||||
| Operating lease liabilities | 98,734 | 104,753 | |||||||||
| Debt obligations | 123,295 | 126,474 | |||||||||
| Warrant liabilities, at fair value | 22,211 | 65,287 | |||||||||
| Securities sold under agreements to repurchase | 163,329 | 156,448 | |||||||||
| Other liabilities | 36,279 | 38,790 | |||||||||
| Liabilities of consolidated entities: | |||||||||||
| Loans payable, at fair value | 201,985 | — | |||||||||
| Warrant liabilities, at fair value | 2,645 | 7,590 | |||||||||
| Other liabilities of consolidated entities | 45,473 | 10,817 | |||||||||
| Total Liabilities | 991,325 | 1,014,972 | |||||||||
| Commitments and Contingencies (Note 16) | |||||||||||
| Redeemable Noncontrolling Interests of Consolidated Entities (Note 3) | 234,600 | 234,600 | |||||||||
| Shareholders’ Equity | |||||||||||
Class A Shares, par value $0.01 per share, 100,000,000 and 100,000,000 shares authorized, 24,885,028 and 25,668,987 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 249 | 257 | |||||||||
Class B Shares, par value $0.01 per share, 75,000,000 and 75,000,000 shares authorized, 33,633,474 and 33,613,023 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 336 | 336 | |||||||||
Treasury stock, at cost; 1,641,589 and 0 as of June 30, 2022 and December 31, 2021, respectively | (19,492) | — | |||||||||
| Additional paid-in capital | 219,705 | 184,691 | |||||||||
| Accumulated deficit | (251,059) | (253,521) | |||||||||
| Accumulated other comprehensive (loss) income | (1,925) | 51 | |||||||||
| Shareholders’ deficit attributable to Class A Shareholders | (52,186) | (68,186) | |||||||||
| Shareholders’ equity attributable to noncontrolling interests | 448,085 | 446,469 | |||||||||
| Total Shareholders’ Equity | 395,899 | 378,283 | |||||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,621,824 | $ | 1,627,855 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Management fees | $ | 71,770 | $ | 76,610 | $ | 145,207 | $ | 150,571 | |||||||||||||||
| Incentive income | 44,580 | 59,544 | 66,222 | 107,348 | |||||||||||||||||||
| Other revenues | 2,520 | 1,778 | 4,950 | 3,359 | |||||||||||||||||||
| Income of consolidated entities | 311 | — | 150 | 3 | |||||||||||||||||||
| Total Revenues | 119,181 | 137,932 | 216,529 | 261,281 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Compensation and benefits | 79,743 | 59,447 | 157,528 | 148,681 | |||||||||||||||||||
| Interest expense | 3,427 | 4,135 | 6,712 | 9,003 | |||||||||||||||||||
| General, administrative and other | 26,425 | 25,022 | 53,741 | 52,398 | |||||||||||||||||||
| Expenses of consolidated entities | 1,668 | — | 1,912 | 2 | |||||||||||||||||||
| Total Expenses | 111,263 | 88,604 | 219,893 | 210,084 | |||||||||||||||||||
| Other (Loss) Income | |||||||||||||||||||||||
| Changes in fair value of warrant liabilities | 18,740 | (13,231) | 43,076 | (38,175) | |||||||||||||||||||
| Changes in tax receivable agreement liability | 227 | (559) | 220 | 21 | |||||||||||||||||||
| Net losses on retirement of debt | — | (6,525) | — | (30,198) | |||||||||||||||||||
| Net (losses) gains on investments | (30,838) | 6,255 | (36,182) | 11,617 | |||||||||||||||||||
| Net losses of consolidated entities | (6,434) | — | (2,294) | — | |||||||||||||||||||
| Total Other (Loss) Income | (18,305) | (14,060) | 4,820 | (56,735) | |||||||||||||||||||
| (Loss) Income Before Income Taxes | (10,387) | 35,268 | 1,456 | (5,538) | |||||||||||||||||||
| Income taxes | (7,914) | 13,047 | (947) | 11,332 | |||||||||||||||||||
| Consolidated Net (Loss) Income | (2,473) | 22,221 | 2,403 | (16,870) | |||||||||||||||||||
| Less: Net (income) loss attributable to noncontrolling interests | (5,579) | (407) | 6,427 | 18,391 | |||||||||||||||||||
| Less: Net income attributable to redeemable noncontrolling interests | (697) | — | (3,765) | — | |||||||||||||||||||
| Net (Loss) Income Attributable to Sculptor Capital Management, Inc. | (8,749) | 21,814 | 5,065 | 1,521 | |||||||||||||||||||
| Change in redemption value of redeemable noncontrolling interests | 697 | — | 3,765 | — | |||||||||||||||||||
| Net (Loss) Income Attributable to Class A Shareholders | $ | (8,052) | $ | 21,814 | $ | 8,830 | $ | 1,521 | |||||||||||||||
| (Loss) Earnings per Class A Share | |||||||||||||||||||||||
| (Loss) Earnings per Class A Share - basic | $ | (0.32) | $ | 0.87 | $ | 0.34 | $ | 0.06 | |||||||||||||||
| (Loss) Earnings per Class A Share - diluted | $ | (0.89) | $ | 0.40 | $ | (1.00) | $ | (0.32) | |||||||||||||||
| Weighted-average Class A Shares outstanding - basic | 25,514,364 | 25,025,974 | 26,052,478 | 24,442,940 | |||||||||||||||||||
| Weighted-average Class A Shares outstanding - diluted | 26,565,792 | 55,191,693 | 27,611,057 | 54,229,693 | |||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Consolidated net (loss) income | $ | (2,473) | $ | 22,221 | $ | 2,403 | $ | (16,870) | |||||||||||||||
| Other Comprehensive (Loss) Income, Net of Tax | |||||||||||||||||||||||
| Other comprehensive (loss) income - currency translation adjustment | (1,226) | 185 | (1,976) | (683) | |||||||||||||||||||
| Comprehensive (Loss) Income | (3,699) | 22,406 | 427 | (17,553) | |||||||||||||||||||
| Less: Comprehensive (income) loss attributable to noncontrolling interests | (5,579) | (523) | 6,427 | 18,761 | |||||||||||||||||||
| Less: Comprehensive income attributable to redeemable noncontrolling interests | (697) | — | (3,765) | — | |||||||||||||||||||
| Comprehensive (Loss) Income Attributable to Sculptor Capital Management, Inc. | $ | (9,975) | $ | 21,883 | $ | 3,089 | $ | 1,208 | |||||||||||||||
| Sculptor Capital Management, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | Class B Shares | Treasury Stock Shares | Class A Shares Par Value | Class B Shares Par Value | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Treasury Stock, at cost | Shareholders’ Deficit Attributable to Class A Shareholders | Shareholders’ Equity Attributable to Noncontrolling Interests | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at April 1, 2022 | 26,052,113 | 33,676,331 | 473,719 | $ | 261 | $ | 337 | $ | 202,305 | $ | (239,776) | $ | (699) | $ | (6,249) | $ | (43,821) | $ | 437,936 | $ | 394,115 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation, net of taxes | 785 | (42,857) | — | — | (1) | 16,948 | — | — | — | 16,947 | 1,959 | 18,906 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of Class A Shares | (1,167,870) | — | 1,167,870 | (12) | — | — | — | — | (13,243) | (13,255) | — | (13,255) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend equivalents on Class A restricted share units | — | — | — | — | — | (245) | 245 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in redemption value of SPAC Class A Shares | — | — | — | — | — | 697 | — | — | — | 697 | — | 697 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on Class A Shares ($0.11 per share) | — | — | — | — | — | — | (2,779) | — | — | (2,779) | — | (2,779) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated net (loss) income, excluding amounts attributable to redeemable noncontrolling interests | — | — | — | — | — | — | (8,749) | — | — | (8,749) | 5,579 | (3,170) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | — | — | — | (1,226) | — | (1,226) | — | (1,226) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital contributions | — | — | — | — | — | — | — | — | — | — | 3,982 | 3,982 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | — | — | (1,371) | (1,371) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2022 | 24,885,028 | 33,633,474 | 1,641,589 | $ | 249 | $ | 336 | $ | 219,705 | $ | (251,059) | $ | (1,925) | $ | (19,492) | $ | (52,186) | $ | 448,085 | $ | 395,899 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at April 1, 2021 | 23,899,777 | 32,887,883 | — | $ | 239 | $ | 329 | $ | 185,961 | $ | (255,522) | $ | 350 | $ | — | $ | (68,643) | $ | 435,590 | $ | 366,947 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation, net of taxes | 1,201,410 | (1) | — | 12 | — | 8,885 | — | — | — | 8,897 | 1,478 | 10,375 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend equivalents on Class A restricted share units | — | — | — | — | — | 5,887 | (5,887) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on Class A Shares ($0.30 per share) | — | — | — | — | — | — | (7,463) | — | — | (7,463) | — | (7,463) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated net income, excluding amounts attributable to redeemable noncontrolling interests | — | — | — | — | — | — | 21,814 | — | — | 21,814 | 407 | 22,221 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | — | — | — | 69 | — | 69 | 116 | 185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital contributions | — | — | — | — | — | — | — | — | — | — | 2,496 | 2,496 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | — | — | (1,467) | (1,467) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2021 | 25,101,187 | 32,887,882 | — | $ | 251 | $ | 329 | $ | 200,733 | $ | (247,058) | $ | 419 | $ | — | $ | (45,326) | $ | 438,620 | $ | 393,294 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Sculptor Capital Management, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | Class B Shares | Treasury Stock Shares | Class A Shares Par Value | Class B Shares Par Value | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Treasury Stock, at cost | Shareholders’ Deficit Attributable to Class A Shareholders | Shareholders’ Equity Attributable to Noncontrolling Interests | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2022 | 25,668,987 | 33,613,023 | — | $ | 257 | $ | 336 | $ | 184,691 | $ | (253,521) | $ | 51 | $ | — | $ | (68,186) | $ | 446,469 | $ | 378,283 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation, net of taxes | 857,630 | 20,451 | — | 9 | — | 31,425 | — | — | — | 31,434 | 3,883 | 35,317 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of Class A Shares | (1,641,589) | — | 1,641,589 | (17) | — | — | — | — | (19,492) | (19,509) | — | (19,509) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend equivalents on Class A restricted share units | — | — | — | — | — | (176) | 176 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in redemption value of SPAC Class A Shares | — | — | — | — | — | 3,765 | — | — | — | 3,765 | — | 3,765 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on Class A Shares ($0.11 per share) | — | — | — | — | — | — | (2,779) | — | — | (2,779) | — | (2,779) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated net income (loss), excluding amounts attributable to redeemable noncontrolling interests | — | — | — | — | — | — | 5,065 | — | — | 5,065 | (6,427) | (1,362) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | — | — | — | (1,976) | — | (1,976) | — | (1,976) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital contributions | — | — | — | — | — | — | — | — | — | — | 8,979 | 8,979 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | — | — | (4,819) | (4,819) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2022 | 24,885,028 | 33,633,474 | 1,641,589 | $ | 249 | $ | 336 | $ | 219,705 | $ | (251,059) | $ | (1,925) | $ | (19,492) | $ | (52,186) | $ | 448,085 | $ | 395,899 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2021 | 22,903,571 | 32,824,538 | — | $ | 229 | $ | 328 | $ | 166,917 | $ | (178,674) | $ | 732 | $ | — | $ | (10,468) | $ | 445,348 | $ | 434,880 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation, net of taxes | 2,197,616 | 63,344 | — | 22 | 1 | 27,339 | — | — | — | 27,362 | 11,552 | 38,914 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend equivalents on Class A restricted share units | — | — | — | — | — | 6,477 | (6,477) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared on Class A Shares ($2.65 per share) | — | — | — | — | — | — | (63,428) | — | — | (63,428) | — | (63,428) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated net income (loss), excluding amounts attributable to redeemable noncontrolling interests | — | — | — | — | — | — | 1,521 | — | — | 1,521 | (18,391) | (16,870) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | — | — | — | (313) | — | (313) | (370) | (683) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital contributions | — | — | — | — | — | — | — | — | — | — | 2,964 | 2,964 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital distributions | — | — | — | — | — | — | — | — | — | — | (2,483) | (2,483) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2021 | 25,101,187 | 32,887,882 | — | $ | 251 | $ | 329 | $ | 200,733 | $ | (247,058) | $ | 419 | $ | — | $ | (45,326) | $ | 438,620 | $ | 393,294 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| (dollars in thousands) | |||||||||||
| Cash Flows from Operating Activities | |||||||||||
| Consolidated net income (loss) | $ | 2,403 | $ | (16,870) | |||||||
| Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities: | |||||||||||
| Amortization of equity-based compensation | 45,647 | 42,919 | |||||||||
| Depreciation, amortization and net gains and losses on fixed assets | 2,698 | 3,309 | |||||||||
| Changes in fair value of warrant liabilities | (43,076) | 38,175 | |||||||||
| Net losses on retirement of debt | — | 30,198 | |||||||||
| Deferred income taxes | (2,238) | 8,131 | |||||||||
| Non-cash lease expense | 9,550 | 10,748 | |||||||||
| Net losses (gains) on investments, net of dividends | 38,968 | (9,140) | |||||||||
| Operating cash flows due to changes in: | |||||||||||
| Income and fees receivable | 167,958 | 463,605 | |||||||||
| Due from related parties | (2,085) | (4,502) | |||||||||
| Other assets, net | (15,850) | 5,839 | |||||||||
| Compensation payable | (199,515) | (187,537) | |||||||||
| Unearned income and fees | 4,471 | 5,324 | |||||||||
| Tax receivable agreement liability | (16,993) | (7,239) | |||||||||
| Operating lease liabilities | (11,029) | (11,076) | |||||||||
| Other liabilities | (2,536) | (20,260) | |||||||||
| Consolidated entities related items: | |||||||||||
| Net losses of consolidated entities | 2,294 | — | |||||||||
| Purchases of investments | (463,231) | — | |||||||||
| Proceeds from sale of investments | 86,645 | — | |||||||||
| Other assets of consolidated entities | (2,679) | (3) | |||||||||
| Other liabilities of consolidated entities | 62,858 | 2 | |||||||||
| Net Cash (Used in) Provided by Operating Activities | (335,740) | 351,623 | |||||||||
| Cash Flows from Investing Activities | |||||||||||
| Purchases of fixed assets | (1,310) | (4,243) | |||||||||
| Purchases of United States government obligations | (28,784) | (164,523) | |||||||||
| Maturities and sales of United States government obligations | 219,144 | 131,690 | |||||||||
| Investments in funds | (49,077) | (97,887) | |||||||||
| Return of investments in funds | 37,734 | 24,692 | |||||||||
| Net Cash Provided by (Used in) Investing Activities | 177,707 | (110,271) | |||||||||
| Six Months Ended June 30, | |||||||||||
| 2022 | 2021 | ||||||||||
| (dollars in thousands) | |||||||||||
| Cash Flows from Financing Activities | |||||||||||
| Contributions from noncontrolling and redeemable noncontrolling interests | 8,979 | 2,964 | |||||||||
| Distributions to noncontrolling and redeemable noncontrolling interests | (4,819) | (2,483) | |||||||||
| Dividends on Class A Shares | (2,779) | (63,428) | |||||||||
| Proceeds from debt obligations, net of issuance costs | 5,683 | 3,219 | |||||||||
| Repayment of debt obligations, including prepayment costs | (9,424) | (249,731) | |||||||||
| Proceeds from securities sold under agreements to repurchase, net of issuance costs | 20,395 | 41,004 | |||||||||
| Purchases of treasury stock | (19,492) | — | |||||||||
| Proceeds from debt obligations of consolidated entities, net of issuance costs | 215,733 | — | |||||||||
| Other, net | (5,962) | (3,838) | |||||||||
| Net Cash Provided by (Used in) Financing Activities | 208,314 | (272,293) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (2,552) | (574) | |||||||||
| Net change in cash and cash equivalents and restricted cash | 47,729 | (31,515) | |||||||||
| Cash and cash equivalents and restricted cash, beginning of period | 412,671 | 186,977 | |||||||||
| Cash and Cash Equivalents and Restricted Cash, End of Period | $ | 460,400 | $ | 155,462 | |||||||
| Supplemental Disclosure of Cash Flow Information | |||||||||||
| Cash paid during the period: | |||||||||||
| Interest | $ | 5,682 | $ | 8,236 | |||||||
| Income taxes | $ | 6,274 | $ | 4,179 | |||||||
| Non-cash transactions: | |||||||||||
| Assets related to initial consolidation of funds | $ | 16,699 | $ | — | |||||||
| Liabilities related to initial consolidation of funds | $ | 2,364 | $ | — | |||||||
| Assets related to deconsolidation of funds | $ | 44,042 | $ | — | |||||||
| Liabilities related to deconsolidation of funds | $ | 29,632 | $ | — | |||||||
| Reconciliation of cash and cash equivalents and restricted cash: | |||||||||||
| Cash and cash equivalents | $ | 192,578 | $ | 153,827 | |||||||
| Restricted cash | 7,238 | 1,635 | |||||||||
| Cash and cash equivalents of consolidated entities | 25,650 | — | |||||||||
| Restricted cash and cash equivalents of the consolidated SPAC | 234,934 | — | |||||||||
| Total Cash and Cash Equivalents and Restricted Cash | $ | 460,400 | $ | 155,462 | |||||||
| As of June 30, 2022 | |||||
| Sculptor Capital Management, Inc. | |||||
| Class A Shares | 24,885,028 | ||||
| Class B Shares | 33,633,474 | ||||
| Restricted Class A Shares (“RSAs”) | 5,228,852 | ||||
Warrants to purchase Class A Shares (Note 7) | 4,338,015 | ||||
| Sculptor Operating Partnerships | |||||
| Group A Units | 15,025,994 | ||||
| Group A-1 Units | 9,244,477 | ||||
| Group B Units | 24,885,028 | ||||
| Group E Units | 13,009,158 | ||||
| Group P Units | 5,412,858 | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Sculptor Capital LP | |||||||||||||||||||||||
| Net (loss) income | $ | (25,001) | $ | 19,669 | $ | 16,215 | $ | (27,794) | |||||||||||||||
| Blended participation percentage | 0 | % | 42 | % | 0 | % | 39 | % | |||||||||||||||
| Net (Loss) Income Attributable to Group A Units | $ | — | $ | 8,220 | $ | — | $ | (10,827) | |||||||||||||||
| Sculptor Capital Advisors LP | |||||||||||||||||||||||
| Net income (loss) | $ | 15,623 | $ | (22,681) | $ | (1,197) | $ | (23,194) | |||||||||||||||
| Blended participation percentage | 36 | % | 39 | % | 38 | % | 39 | % | |||||||||||||||
| Net Income (Loss) Attributable to Group A Units | $ | 5,702 | $ | (8,830) | $ | (451) | $ | (9,036) | |||||||||||||||
| Sculptor Capital Advisors II LP | |||||||||||||||||||||||
| Net (loss) income | $ | (1,677) | $ | 36,368 | $ | (19,473) | $ | 41,583 | |||||||||||||||
| Blended participation percentage | 49 | % | 0 | % | 38 | % | 0 | % | |||||||||||||||
| Net (Loss) Income Attributable to Group A Units | $ | (821) | $ | — | $ | (7,331) | $ | — | |||||||||||||||
| Total Sculptor Operating Group | |||||||||||||||||||||||
| Net (loss) income | $ | (11,055) | $ | 33,356 | $ | (4,455) | $ | (9,405) | |||||||||||||||
| Blended participation percentage | -44 | % | -2 | % | 175 | % | 211 | % | |||||||||||||||
| Net Income (Loss) Attributable to Group A Units | $ | 4,881 | $ | (610) | $ | (7,782) | $ | (19,863) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Group A Units | $ | 4,881 | $ | (610) | $ | (7,782) | $ | (19,863) | |||||||||||||||
| Other | 698 | 1,017 | 1,355 | 1,472 | |||||||||||||||||||
| $ | 5,579 | $ | 407 | $ | (6,427) | $ | (18,391) | ||||||||||||||||
| June 30, 2022 | December 31, 2021 | ||||||||||
| (dollars in thousands) | |||||||||||
| Group A Units | $ | 427,405 | $ | 431,304 | |||||||
| Other | 20,680 | 15,165 | |||||||||
| $ | 448,085 | $ | 446,469 | ||||||||
| Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | ||||||||||
| 2022 | 2022 | ||||||||||
| SPAC | SPAC | ||||||||||
| (dollars in thousands) | |||||||||||
| Beginning balance | $ | 234,600 | $ | 234,600 | |||||||
| Change in redemption value of Class A Shares of consolidated SPAC | (697) | (3,765) | |||||||||
| Comprehensive income | 697 | 3,765 | |||||||||
| Ending Balance | $ | 234,600 | $ | 234,600 | |||||||
| June 30, 2022 | December 31, 2021 | ||||||||||
| (dollars in thousands) | |||||||||||
| U.S. government obligations, at fair value | $ | 14,784 | $ | 205,400 | |||||||
| CLOs, at fair value | 203,631 | 219,510 | |||||||||
| Equity method investments | 118,578 | 158,712 | |||||||||
| Total Investments | $ | 336,993 | $ | 583,622 | |||||||
| Investments of Consolidated Entities | $ | 331,151 | $ | — | |||||||
Fund Type(1) | Fair Value (as of June 30, 2022) | Redemption Frequency(2) | Redemption Notice Period(2) | |||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Multi-strategy funds | 105,691 | Quarterly - Annually | 30 days - 90 days | |||||||||||||||||
| Credit | 123,410 | Monthly - Annually | 30 days - 90 days | |||||||||||||||||
| Total | $ | 229,101 | ||||||||||||||||||
| As of June 30, 2022 | |||||||||||||||||||||||||||||
| Level I | Level II | Level III | NAV | Total | |||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||
| Assets, at Fair Value | |||||||||||||||||||||||||||||
| Included within cash and cash equivalents: | |||||||||||||||||||||||||||||
| U.S. government obligations | $ | 4,999 | $ | — | $ | — | $ | — | $ | 4,999 | |||||||||||||||||||
| Included within investments: | |||||||||||||||||||||||||||||
| U.S. government obligations | $ | 14,784 | $ | — | $ | — | $ | — | $ | 14,784 | |||||||||||||||||||
CLOs(1) | $ | — | $ | — | $ | 203,631 | $ | — | $ | 203,631 | |||||||||||||||||||
| Included within restricted cash and cash equivalents of consolidated entities: | |||||||||||||||||||||||||||||
| U.S. government obligations | $ | 234,934 | $ | — | $ | — | $ | — | $ | 234,934 | |||||||||||||||||||
| Included within investments of consolidated entities: | |||||||||||||||||||||||||||||
| Futures Contracts | $ | 18 | $ | — | $ | — | $ | — | $ | 18 | |||||||||||||||||||
| Common Stock | — | 507 | — | — | 507 | ||||||||||||||||||||||||
| Bank Debt | — | 37,963 | 40,226 | — | 78,189 | ||||||||||||||||||||||||
| Corporate Bonds | — | 23,336 | — | — | 23,336 | ||||||||||||||||||||||||
| Investments in funds | — | — | — | 229,101 | 229,101 | ||||||||||||||||||||||||
| Investments of Consolidated Entities | $ | 18 | $ | 61,806 | $ | 40,226 | $ | 229,101 | $ | 331,151 | |||||||||||||||||||
| Liabilities, at Fair Value | |||||||||||||||||||||||||||||
| Warrants | $ | — | $ | — | $ | 22,211 | $ | — | $ | 22,211 | |||||||||||||||||||
| Liabilities of consolidated entities: | |||||||||||||||||||||||||||||
| Warrants | $ | 2,645 | $ | — | $ | — | $ | — | $ | 2,645 | |||||||||||||||||||
| Notes payable | $ | — | $ | — | $ | 201,985 | $ | — | $ | 201,985 | |||||||||||||||||||
| As of December 31, 2021 | |||||||||||||||||||||||
| Level I | Level II | Level III | Total | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Assets, at Fair Value | |||||||||||||||||||||||
| Included within investments: | |||||||||||||||||||||||
| U.S. government obligations | $ | 205,400 | $ | — | $ | — | $ | 205,400 | |||||||||||||||
CLOs(1) | $ | — | $ | — | $ | 219,510 | $ | 219,510 | |||||||||||||||
| Included within restricted cash of consolidated entities: | |||||||||||||||||||||||
| U.S. government obligations | $ | 234,601 | $ | — | $ | — | $ | 234,601 | |||||||||||||||
| Liabilities, at Fair Value | |||||||||||||||||||||||
| Warrants | $ | — | $ | — | $ | 65,287 | $ | 65,287 | |||||||||||||||
| Liabilities of consolidated entities: | |||||||||||||||||||||||
| Warrants | $ | — | $ | — | $ | 7,590 | $ | 7,590 | |||||||||||||||
| March 31, 2022 | Purchases / Issuances | Investment Sales / Settlements | Gains / (Losses) Included in Earnings | Gains / (Losses) Included in Other Comprehensive Income | June 30, 2022 | ||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Assets, at Fair Value | |||||||||||||||||||||||||||||||||||
| Included within investments: | |||||||||||||||||||||||||||||||||||
| CLOs | $ | 226,552 | $ | 1,032 | $ | (26) | $ | (14,269) | $ | (9,658) | $ | 203,631 | |||||||||||||||||||||||
| Investments of consolidated entities: | |||||||||||||||||||||||||||||||||||
| Bank Debt | $ | — | $ | 41,792 | $ | — | $ | (1,566) | $ | — | $ | 40,226 | |||||||||||||||||||||||
| Liabilities, at Fair Value | |||||||||||||||||||||||||||||||||||
| Warrants | $ | 40,951 | $ | — | $ | — | $ | 18,740 | $ | — | $ | 22,211 | |||||||||||||||||||||||
| Liabilities of consolidated entities: | |||||||||||||||||||||||||||||||||||
| Notes payable | $ | 215,733 | $ | — | $ | — | $ | 13,748 | $ | — | $ | 201,985 | |||||||||||||||||||||||
| March 31, 2021 | Purchases / Issuances | Investment Sales / Settlements | Gains / (Losses) Included in Earnings | Gains / (Losses) Included in Other Comprehensive Income | June 30, 2021 | ||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Assets, at Fair Value | |||||||||||||||||||||||||||||||||||
| Included within investments: | |||||||||||||||||||||||||||||||||||
| CLOs | $ | 202,842 | $ | 30,846 | $ | (16,125) | $ | 330 | $ | 1,540 | $ | 219,433 | |||||||||||||||||||||||
| Liabilities, at Fair Value | |||||||||||||||||||||||||||||||||||
| Warrants | $ | 62,771 | $ | — | $ | — | $ | (13,231) | $ | — | $ | 76,002 | |||||||||||||||||||||||
| December 31, 2021 | Transfers In | Transfers Out | Purchases / Issuances | Investment Sales / Settlements | Gains / (Losses) Included in Earnings | Gains / (Losses) Included in Other Comprehensive Income | June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Assets, at Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||
| Included within investments: | |||||||||||||||||||||||||||||||||||||||||||||||
| CLOs | $ | 219,510 | $ | — | $ | — | $ | 29,839 | $ | (12,373) | $ | (18,788) | $ | (14,557) | $ | 203,631 | |||||||||||||||||||||||||||||||
| Investments of consolidated entities: | |||||||||||||||||||||||||||||||||||||||||||||||
| Bank Debt | $ | — | $ | 3,603 | (1) | $ | (14,666) | (1) | $ | 56,425 | $ | (3,475) | $ | (1,661) | $ | — | $ | 40,226 | |||||||||||||||||||||||||||||
| Liabilities, at Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||
| Warrants | $ | 65,287 | $ | — | $ | — | $ | — | $ | — | $ | 43,076 | $ | — | $ | 22,211 | |||||||||||||||||||||||||||||||
| Liabilities of consolidated entities: | |||||||||||||||||||||||||||||||||||||||||||||||
| Warrants | $ | 7,590 | $ | — | $ | (3,450) | (2) | $ | — | $ | — | $ | 4,140 | $ | — | $ | — | ||||||||||||||||||||||||||||||
| Notes payable | $ | — | $ | — | $ | — | $ | 215,733 | $ | — | $ | 13,748 | $ | — | $ | 201,985 | |||||||||||||||||||||||||||||||
| December 31, 2020 | Purchases / Issuances | Investment Sales / Settlements | Gains / (Losses) Included in Earnings | Gains / (Losses) Included in Other Comprehensive Income | June 30, 2021 | ||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Assets, at Fair Value | |||||||||||||||||||||||||||||||||||
| Included within investments: | |||||||||||||||||||||||||||||||||||
| CLOs | $ | 205,510 | $ | 33,294 | $ | (16,145) | $ | 1,753 | $ | (4,979) | $ | 219,433 | |||||||||||||||||||||||
| Liabilities, at Fair Value | |||||||||||||||||||||||||||||||||||
| Warrants | $ | 37,827 | $ | — | $ | — | $ | (38,175) | $ | — | $ | 76,002 | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Assets, at Fair Value | |||||||||||||||||||||||
| Included within investments: | |||||||||||||||||||||||
| CLOs | $ | (23,928) | $ | 2,625 | $ | (33,346) | $ | (2,470) | |||||||||||||||
| Included within investments of consolidated entities: | |||||||||||||||||||||||
| Bank debt | $ | (1,566) | $ | — | $ | ||||||||||||||||||