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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 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 ________
Commission File Number: 001-33805
SCULPTOR CAPITAL MANAGEMENT, INC.
(Exact name of Registrant as specified in its charter)
 
Delaware 26-0354783
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
9 West 57th Street, New York, New York 10019
(Address of principal executive offices)
(212) 790-0000
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s)Name of each exchange on which registered
Class A Shares SCUNew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  Accelerated filer
  
Non-accelerated filer  Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
    Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 
As of November 3, 2022, there were 23,922,929 Class A Shares, 5,203,172 of Restricted Class A Shares and 33,569,188 Class B Shares outstanding.
 




SCULPTOR CAPITAL MANAGEMENT, INC.
TABLE OF CONTENTS
 
  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.
 

i


Defined Terms
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 incomeAccrued 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.
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.
1


Distribution HolidayThe 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, redeemable 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 ManagementFee 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.
2


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 UnitsOne 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.
3


Securities Act
Securities Act of 1933, as amended.
SPACRefers 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.
4


Available Information
We file annual, quarterly and current reports, proxy statements and other information required by the Exchange Act with the SEC. We make available free of charge on our website (www.sculptor.com) our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and any amendments to those filings as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. We also use our website to distribute company information, including Assets Under Management by investment strategy, and such information may be deemed material. Accordingly, investors should monitor our website, in addition to our press releases, SEC filings and public conference calls and webcasts. The contents of our website are not, however, a part of this report.
Also posted on our website in the “Shareholder Services—Corporate Governance” section are charters for our Audit Committee; Compensation Committee; Nominating, Corporate Governance and Conflicts Committee and Corporate Responsibility and Compliance Committee, as well as our Corporate Governance Guidelines and Code of Business Conduct and Ethics governing our directors, officers and employees. Information on, or accessible through, our website is not a part of, and is not incorporated into, this report or any other SEC filing. Copies of our SEC filings or corporate governance materials are available without charge upon written request to Sculptor Capital Management, Inc., 9 West 57th Street, New York, New York 10019, Attention: Office of the Secretary. Any materials we file with the SEC are also publicly available through the SEC’s website (www.sec.gov).
No statements herein, available on our website or in any of the materials we file with the SEC constitute, or should be viewed as constituting, an offer of any fund.
Forward-Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that reflect our current views with respect to, among other things, future events, our operations and our financial performance. We generally identify forward-looking statements by terminology such as “outlook,” “believe,” “expect,” “potential,” “continue,” “may,” “will,” “should,” “could,” “seek,” “approximately,” “predict,” “intend,” “plan,” “estimate,” “anticipate,” “opportunity,” “comfortable,” “assume,” “remain,” “maintain,” “sustain,” “achieve,” “see,” “think,” “position” or the negative version of those words or other comparable words.
Any forward-looking statements contained herein are based upon historical information and on our current plans, estimates and expectations. The inclusion of this or other forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved.
We caution that forward-looking statements are subject to numerous assumptions, estimates, risks and uncertainties, including but not limited to the following: global economic, business, market and geopolitical conditions, the United Kingdom’s withdrawal from the European Union; poor investment performance of, or lack of capital flows into, the funds we manage; our investors’ right to redeem their investments from our funds on a regular basis; the highly variable nature of our revenues, results of operations and cash flows; difficult market conditions that could adversely affect our funds; counterparty default risks; the outcome of third-party litigation involving us; the consequences of the Foreign Corrupt Practices Act settlements with the SEC and the U.S. Department of Justice (the “DOJ”) and any claims or negative publicity arising therefrom or from matters involving the Company’s founding CEO; conditions impacting the alternative asset management industry; our ability to retain existing investor capital; our ability to successfully compete for fund investors, assets, professional talent and investment opportunities; our ability to retain our executive managing directors, managing directors and other investment professionals; our successful formulation and execution of our business and growth strategies; our ability to appropriately manage conflicts of interest and tax and other regulatory factors relevant to our business; United States (“U.S.”) and foreign regulatory developments relating to, among other things, financial institutions and markets, government oversight, fiscal and tax policy; and assumptions relating to our operations, investment performance, financial results, financial condition, business prospects, growth strategy and liquidity.
If one or more of these or other risks or uncertainties materialize, or if our assumptions or estimates prove to be incorrect, our actual results may vary materially from those indicated in these statements. These factors are not and should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risks that are included in our filings with the SEC, including but not limited to those described in our Annual Report.
There may be additional risks, uncertainties and factors that we do not currently view as material or that are not known. The forward-looking statements contained in this report are made only as of the date of this report. We do not undertake to update any forward-looking statement because of new information, future developments or otherwise.
5

SCULPTOR CAPITAL MANAGEMENT, INC.
CONSOLIDATED BALANCE SHEETS — UNAUDITED
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
 September 30, 2022December 31, 2021
 (dollars in thousands)
Assets  
Cash and cash equivalents$170,304 $170,781 
Restricted cash7,144 7,289 
Investments (includes assets measured at fair value of $268,497 and $424,910, including assets sold under agreements to repurchase of $140,461 and $157,721 as of September 30, 2022 and December 31, 2021, respectively)
361,905 583,622 
Income and fees receivable26,037 193,636 
Due from related parties27,944 28,037 
Deferred income tax assets247,824 241,759 
Operating lease assets78,650 85,735 
Other assets, net101,643 77,091 
Assets of consolidated entities: 
Cash and cash equivalents83  
Restricted cash and cash equivalents9,882 234,601 
Investments of consolidated entities543,843  
Other assets of consolidated entities11,813 5,304 
Total Assets$1,587,072 $1,627,855 
Liabilities and Shareholders’ Equity 
Liabilities  
Compensation payable$73,269 $246,261 
Unearned income and fees66,188 62,800 
Tax receivable agreement liability178,773 195,752 
Operating lease liabilities95,174 104,753 
Debt obligations123,812 126,474 
Warrant liabilities, at fair value24,597 65,287 
Securities sold under agreements to repurchase152,883 156,448 
Other liabilities37,853 38,790 
Liabilities of consolidated entities: 
Notes payable, at fair value207,978  
Warrant liabilities, at fair value1,639 7,590 
Other liabilities of consolidated entities14,791 10,817 
Total Liabilities976,957 1,014,972 
Commitments and Contingencies (Note 16)
Redeemable Noncontrolling Interests of Consolidated Entities (Note 3)235,918 234,600 
Shareholders’ Equity  
Class A Shares, par value $0.01 per share, 100,000,000 shares authorized; 26,612,372 and 25,668,987 shares issued and 24,034,767 and 25,668,987 shares outstanding as of September 30, 2022 and December 31, 2021, respectively
240 257 
Class B Shares, par value $0.01 per share, 75,000,000 shares authorized; 33,569,188 and 33,613,023 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively
336 336 
Treasury stock, at cost; 2,577,605 and 0 as of September 30, 2022 and December 31, 2021, respectively
(28,232) 
Additional paid-in capital237,940 184,691 
Accumulated deficit(277,292)(253,521)
Accumulated other comprehensive (loss) income(3,355)51 
Shareholders’ deficit attributable to Class A Shareholders(70,363)(68,186)
Shareholders’ equity attributable to noncontrolling interests444,560 446,469 
Total Shareholders’ Equity374,197 378,283 
Total Liabilities and Shareholders’ Equity$1,587,072 $1,627,855 
    See notes to consolidated financial statements.
6


SCULPTOR CAPITAL MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
 Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
 (dollars in thousands)
Revenues    
Management fees$66,236 $76,820 $211,443 $227,391 
Incentive income7,566 27,031 73,788 134,379 
Other revenues3,576 1,786 8,526 5,145 
Income of consolidated entities1,453  1,603 3 
Total Revenues78,831 105,637 295,360 366,918 

Expenses    
Compensation and benefits67,130 53,078 224,658 201,759 
Interest expense3,876 3,277 10,588 12,280 
General, administrative and other28,290 39,672 82,031 92,070 
Expenses of consolidated entities1,031  2,943 2 
Total Expenses100,327 96,027 320,220 306,111 

Other Loss    
Changes in fair value of warrant liabilities(2,386)(12,710)40,690 (50,885)
Changes in tax receivable agreement liability(14)(39)206 (18)
Net losses on retirement of debt   (30,198)
Net (losses) gains on investments(2,989)5,068 (39,171)16,685 
Net losses of consolidated entities(3,498) (5,792) 
Total Other Loss(8,887)(7,681)(4,067)(64,416)

(Loss) Income Before Income Taxes(30,383)1,929 (28,927)(3,609)
Income taxes227 8,653 (720)19,985 
Consolidated Net Loss(30,610)(6,724)(28,207)(23,594)
Less: Net loss attributable to noncontrolling interests9,410 2,386 15,837 20,777 
Less: Net income attributable to redeemable noncontrolling interests(1,492) (5,257) 
Net Loss Attributable to Sculptor Capital Management, Inc.(22,692)(4,338)(17,627)(2,817)
Change in redemption value of redeemable noncontrolling interests174  3,939  
Net Loss Attributable to Class A Shareholders$(22,518)$(4,338)$(13,688)$(2,817)
Loss per Class A Share   
Loss per Class A Share - basic$(0.91)$(0.17)$(0.53)$(0.11)
Loss per Class A Share - diluted$(0.91)$(0.17)$(1.79)$(0.50)
Weighted-average Class A Shares outstanding - basic24,772,098 25,334,903 25,620,996 24,743,527 
Weighted-average Class A Shares outstanding - diluted24,772,098 25,334,903 26,818,176 40,763,033 

See notes to consolidated financial statements.
7


SCULPTOR CAPITAL MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) — UNAUDITED
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(dollars in thousands)
Consolidated net loss$(30,610)$(6,724)$(28,207)$(23,594)
Other Comprehensive Loss, Net of Tax
Other comprehensive loss - currency translation adjustment(1,430)(565)(3,406)(1,248)
Comprehensive Loss(32,040)(7,289)(31,613)(24,842)
Less: Comprehensive loss attributable to noncontrolling interests9,410 2,678 15,837 21,439 
Less: Comprehensive income attributable to redeemable noncontrolling interests(1,492) (5,257) 
Comprehensive (Loss) Income Attributable to Sculptor Capital Management, Inc.$(24,122)$(4,611)$(21,033)$(3,403)

See notes to consolidated financial statements.
8


SCULPTOR CAPITAL MANAGEMENT, INC.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT) — UNAUDITED
Sculptor Capital Management, Inc. Shareholders
 Class A SharesClass B SharesTreasury Stock SharesClass A Shares Par ValueClass B Shares Par ValueAdditional Paid in CapitalAccumulated DeficitAccumulated Other Comprehensive (Loss) IncomeTreasury Stock, at costShareholders’ Deficit Attributable to Class A Shareholders Shareholders’ Equity Attributable to Noncontrolling InterestsTotal Shareholders’ Equity
(dollars in thousands, except share data)
Balance at July 1, 202224,885,028 33,633,474 1,641,589 $249 $336 $219,705 $(251,059)$(1,925)$(19,492)$(52,186)$448,085 $395,899 
Equity-based compensation, net of taxes85,755 (64,286)—   17,742 — — — 17,742 2,146 19,888 
Repurchase of Class A Shares(936,016)— 936,016 (9)— — — — (8,740)(8,749)— (8,749)
Dividend equivalents on Class A restricted share units— — — — — 319 (319)— —  —  
Change in redemption value of SPAC Class A Shares— — — — — 174 — — — 174  174 
Cash dividends declared on Class A Shares ($0.13 per share)
— — — — — — (3,222)— — (3,222)— (3,222)
Consolidated net loss, excluding amounts attributable to redeemable noncontrolling interests— — — — — — (22,692)— — (22,692)(9,410)(32,102)
Currency translation adjustment— — — — — — — (1,430)— (1,430) (1,430)
Capital contributions— — — — — — — — — — 5,490 5,490 
Capital distributions— — — — — — — — — — (1,751)(1,751)
Balance at September 30, 202224,034,767 33,569,188 2,577,605 $240 $336 $237,940 $(277,292)$(3,355)$(28,232)$(70,363)$444,560 $374,197 
Balance at July 1, 202125,101,187 32,887,882  $251 $329 $200,733 $(247,058)$419 $ $(45,326)$438,620 $393,294 
Equity-based compensation, net of taxes115,669  — 1  6,224 — — — 6,225 3,172 9,397 
Dividend equivalents on Class A restricted share units— — — — — 834 (834)— —  —  
Cash dividends declared on Class A Shares ($0.54 per share)
— — — — — — (13,618)— — (13,618)— (13,618)
Consolidated net loss, excluding amounts attributable to redeemable noncontrolling interests— — — — — — (4,338)— — (4,338)(2,386)(6,724)
Currency translation adjustment— — — — — — — (273)— (273)(292)(565)
Capital contributions— — — — — — — — — — 763 763 
Capital distributions— — — — — — — — — — (3,001)(3,001)
Balance at September 30, 202125,216,856 32,887,882  $252 $329 $207,791 $(265,848)$146 $ $(57,330)$436,876 $379,546 
9


SCULPTOR CAPITAL MANAGEMENT, INC.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT) — (continued)

Sculptor Capital Management, Inc. Shareholders
 Class A SharesClass B SharesTreasury Stock SharesClass A Shares Par ValueClass B Shares Par ValueAdditional Paid in CapitalAccumulated DeficitAccumulated Other Comprehensive (Loss) IncomeTreasury Stock, at costShareholders’ Deficit Attributable to Class A Shareholders Shareholders’ Equity Attributable to Noncontrolling InterestsTotal Shareholders’ Equity
(dollars in thousands, except share data)
Balance at January 1, 202225,668,987 33,613,023  $257 $336 $184,691 $(253,521)$51 $ $(68,186)$446,469 $378,283 
Equity-based compensation, net of taxes943,385 (43,835)— 9  49,167 — — — 49,176 6,029 55,205 
Repurchase of Class A Shares(2,577,605)— 2,577,605 (26)— — — — (28,232)(28,258)— (28,258)
Dividend equivalents on Class A restricted share units— — — — — 143 (143)— —  —  
Change in redemption value of SPAC Class A Shares— — — — — 3,939 — — — 3,939  3,939 
Cash dividends declared on Class A Shares ($0.24 per share)
— — — — — — (6,001)— — (6,001)— (6,001)
Consolidated net loss, excluding amounts attributable to redeemable noncontrolling interests— — — — — — (17,627)— — (17,627)(15,837)(33,464)
Currency translation adjustment— — — — — — — (3,406)— (3,406) (3,406)
Capital contributions— — — — — — — — — — 14,469 14,469 
Capital distributions— — — — — — — — — — (6,570)(6,570)
Balance at September 30, 202224,034,767 33,569,188 2,577,605 $240 $336 $237,940 $(277,292)$(3,355)$(28,232)$(70,363)$444,560 $374,197 
Balance at January 1, 202122,903,571 32,824,538  $229 $328 $166,917 $(178,674)$732 $ $(10,468)$445,348 $434,880 
Equity-based compensation, net of taxes2,313,285 63,344 — 23 1 33,563 — — — 33,587 14,724 48,311 
Dividend equivalents on Class A restricted share units— — — — — 7,311 (7,311)— —    
Cash dividends declared on Class A Shares ($3.19 per share)
— — — — — — (77,046)— — (77,046)— (77,046)
Consolidated net loss, excluding amounts attributable to redeemable noncontrolling interests— — — — — — (2,817)— — (2,817)(20,777)(23,594)
Currency translation adjustment— — — — — — — (586)— (586)(662)(1,248)
Capital contributions— — — — — — — — — — 3,727 3,727 
Capital distributions— — — — — — — — — — (5,484)(5,484)
Balance at September 30, 202125,216,856 32,887,882  $252 $329 $207,791 $(265,848)$146 $ $(57,330)$436,876 $379,546 
See notes to consolidated financial statements.
10


SCULPTOR CAPITAL MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED



 Nine Months Ended September 30,
 20222021
 (dollars in thousands)
Cash Flows from Operating Activities 
Consolidated net loss$(28,207)$(23,594)
Adjustments to reconcile consolidated net loss to net cash provided by (used in) operating activities:  
Amortization of equity-based compensation66,664 54,089 
Depreciation, amortization and net gains and losses on fixed assets3,815 7,439 
Changes in fair value of warrant liabilities(40,690)50,885 
Net losses on retirement of debt 30,198 
Deferred income taxes(4,103)14,452 
Non-cash lease expense14,311 27,084 
Net losses (gains) on investments, net of dividends42,831 (5,468)
Operating cash flows due to changes in:  
Income and fees receivable167,168 493,657 
Due from related parties(93)(