Rithm Capital Corp. · NYSE:RITM
Rithm Capital — Merger or Acquisition (July 2023)
18 slides from Rithm Capital's merger presentation, Jul 24, 2023
Slide 1: Rithm Capital to Acquire Sculptor Capital Management
Rithm Capital to Acquire Sculptor Capital Management July 24, 2023 1
Slide 2: Disclaimers
Disclaimers This presentation is being provided by Rithm Capital Corp. (“Rithm Capital”) solely for informational purposes for its public shareholders. To the maximum extent permitted by law, none of us or our affiliates, directors, officers, partners, employees, agents, or advisors or any other per
Slide 3: Transaction Details
Transaction Details Overview • Rithm is acquiring Sculptor Capital Management, Inc. (NYSE: SCU) and its operating subsidiaries (together, “Sculptor”) ‒ Alternative asset manager with ~$34bn under management as of July 1, 2023 ‒ Strategies include opportunistic credit, institutional credit, real esta
Slide 4: Transaction Summary & Rationale
Transaction Summary & Rationale(1) The acquisition of Sculptor accelerates Rithm’s growth as an alternative asset manager Significant Expansion into Asset Strong Alignment of Interests and Management Projected to be Value-Additive for Rithm Shareholders • ~$34bn of AUM diversified across the Multi-S
Slide 5: Sculptor Overview
Sculptor Overview Sculptor is a ~$34bn AUM diversified alternative asset manager investing opportunistically across the credit(1), real estate and multi-strategy sectors Private Asset & Credit Solutions Market Solutions AUM $34.2bn $26.0bn $8.2bn Credit Real Estate Multi-Strategy Employees Worldwide
Slide 6: Sculptor Fund Performance
Sculptor Fund Performance Sculptor is focused on delivering strong performance for clients through its third-party funds Multi-Strategy(1)(2) (since April 1, 1994) Real Estate(3)*,** (as of March 31, 2023) Vintage Year: 2005 Vintage Year: 2010 Vintage Year: 2014 Vintage Year: 2015 21.7% 20.8% Vol: 1
Slide 7: Combined Rithm Platform
Combined Rithm Platform The combined Rithm platform will boast expertise across real estate, credit, structured products, and loan origination and servicing $32 Billion in Assets Rithm Balance Sheet + $34 Billion in AUM Third-Party Capital Rithm Investment Portfolio ALTERNATIVE INVESTMENT RESIDENTIA
Slide 8: Rithm's Track Record of Accretive Corporate Transactions
Rithm’s Track Record of Accretive Corporate Transactions The agreement to acquire Sculptor follows numerous value-add transactions the Rithm team has executed over the last decade SPRINGCASTLE MSRs 2013 2015 2017 2018 2019 2021 2022 2023 • Becomes • Grows • Acquires • Acquires • Enhances its • Gains
Slide 9: Rithm is Well-Positioned to Capitalize on Opportunities & Synergies
Rithm is Well-Positioned to Capitalize on Opportunities & Synergies Sculptor will function as a separate business unit within Rithm as we seek to capitalize on strategic opportunities and realize significant synergies(1) Capitalize on Strategic Opportunities Realize Significant Synergies • Combined
Slide 10: Rithm Preliminary Q2'23 Results
Rithm Preliminary Q2’23 Results
Slide 11: Rithm Q2'23 Preliminary Financial Highlights
Rithm Q2’23 Preliminary Financial Highlights GAAP Net Income Per Diluted Share(1) • $0.71 to $0.77 Earnings Available for Distribution Per • $0.59 to $0.65 Diluted Share(1)* ‒ Includes a realized gain of $0.20 related to the sale of Excess MSRs during the quarter Book Value Per Share(2) • $12.13 to
Slide 12: Rithm Q2'23 Business Highlights
Rithm Q2’23 Business Highlights In addition to the announcement of the Sculptor acquisition, Rithm was active in the quarter across the financial services landscape(1) Diversified Capital Strong Residential Robust Quarter of Expansion of SFR Deployment and Mortgage Business Purpose and BTR Capabilit
Slide 13: Unaudited GAAP Reconciliation of Earnings Available for Distribution
Unaudited GAAP Reconciliation of Earnings Available for Distribution ($000s, except per share data) Preliminary Q2 2023 Range Low High Reconciliation of Earnings Available for Distribution (EAD) Net income attributable to common stockholders $ 342,844 $ 371,846 Adjustments for Non-EAD Earnings: Real
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures • The Company has five primary variables that impact its operating performance: (i) the current yield earned on the Company’s investments, (ii) the interest expense under the debt incurred to finance the Company’s investments, (iii) the Company’s operati
Slide 15: Appendix
Appendix
Slide 16: Sculptor Performance Disclosures (1/2)
Sculptor Performance Disclosures (1/2) 1. “Multi Strategy” comparison shows the returns and volatility of the MSCI World Index (and the HFRI Fund Weighted Composite Index) against the Sculptor Multi Strategy Composite (the “Sculptor Multi Strategy Composite”) The Sculptor Multi Strategy Composite re
Slide 17: Sculptor Performance Disclosures (2/2)
Sculptor Performance Disclosures (2/2) 3. “Real Estate” refers to the comparison of the internal rates of return of the respective vintage year of Cambridge Associates Real Estate Benchmark (“CA Benchmark”) net of fees, expenses and carried interest, against the net internal rates of return of Sculp
Slide 18: Slide 18