QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended | |||||
or | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from ________ to ________ | |||||
(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 | ||||||||||||
Large 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. | ☐ |
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 38.1 million Class A Shares to DIC Sahir Limited, a wholly owned indirect subsidiary of Dubai Holdings LLC | |||||||
active executive managing directors | Executive managing directors who remain active in our business | |||||||
Annual Report | Our annual report on Form 10-K for the year ended December 31, 2020, dated February 23, 2021 and filed with the SEC | |||||||
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 | |||||||
Distribution Holiday | The Sculptor Operating Partnerships initiated a distribution holiday (the “Distribution Holiday”) on the Group A Units, Group D Units, Group E Units and Group P Units and on certain RSUs 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 D Units, Group E Units and Group P Units and certain RSUs, 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. | |||||||
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 | |||||||
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 | |||||||
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 Class 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, and other customized solutions | |||||||
IPO | Our initial public offering of 3.6 million Class A Shares that occurred in November 2007 | |||||||
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 represents one “Preferred Unit.” Certain of our executive managing directors collectively owned 100% of the Preferred Units. Preferred Units issued in 2016 and 2017 are, collectively, referred to as “2016 Preferred Units.” Preferred Units issued in 2019 are referred to as “2019 Preferred Units.” We redeemed in full the Preferred Units in the fourth quarter of 2020, and as of September 30, 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 active and former executive managing directors 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 | |||||||
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, D, 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 | |||||||
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 |
September 30, 2021 | December 31, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Investments (includes assets measured at fair value of $ | |||||||||||
Income and fees receivable | |||||||||||
Due from related parties | |||||||||||
Deferred income tax assets | |||||||||||
Operating lease assets | |||||||||||
Other assets, net | |||||||||||
Assets of consolidated funds: | |||||||||||
Other assets of consolidated funds | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
Liabilities | |||||||||||
Compensation payable | $ | $ | |||||||||
Unearned income and fees | |||||||||||
Tax receivable agreement liability | |||||||||||
Operating lease liabilities | |||||||||||
Debt obligations | |||||||||||
Warrant liabilities, at fair value | |||||||||||
Securities sold under agreements to repurchase | |||||||||||
Other liabilities | |||||||||||
Liabilities of consolidated funds: | |||||||||||
Other liabilities of consolidated funds | |||||||||||
Total Liabilities | |||||||||||
Commitments and Contingencies (Note 16) | |||||||||||
Shareholders’ Equity | |||||||||||
Class A Shares, par value $ | |||||||||||
Class B Shares, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Shareholders’ deficit attributable to Class A Shareholders | ( | ( | |||||||||
Shareholders’ equity attributable to noncontrolling interests | |||||||||||
Total Shareholders’ Equity | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees | $ | $ | $ | $ | |||||||||||||||||||
Incentive income | |||||||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Income of consolidated funds | |||||||||||||||||||||||
Total Revenues | |||||||||||||||||||||||
Expenses | |||||||||||||||||||||||
Compensation and benefits | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
General, administrative and other | |||||||||||||||||||||||
Expenses of consolidated funds | |||||||||||||||||||||||
Total Expenses | |||||||||||||||||||||||
Other (Loss) Income | |||||||||||||||||||||||
Changes in fair value of warrant liabilities | ( | ( | |||||||||||||||||||||
Changes in tax receivable agreement liability | ( | ( | |||||||||||||||||||||
Net losses on retirement of debt | ( | ( | |||||||||||||||||||||
Net gains on investments | |||||||||||||||||||||||
Total Other (Loss) Income | ( | ( | |||||||||||||||||||||
Income (Loss) Before Income Taxes | ( | ( | |||||||||||||||||||||
Income taxes | ( | ||||||||||||||||||||||
Consolidated Net (Loss) Income | ( | ( | ( | ||||||||||||||||||||
Less: Net loss (income) attributable to noncontrolling interests | ( | ||||||||||||||||||||||
Net (Loss) Income Attributable to Sculptor Capital Management, Inc. | ( | ( | ( | ||||||||||||||||||||
Change in redemption value of Preferred Units | ( | ( | |||||||||||||||||||||
Net (Loss) Income Attributable to Class A Shareholders | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
(Loss) Earnings per Class A Share | |||||||||||||||||||||||
(Loss) Earnings per Class A Share - basic | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
(Loss) Earnings per Class A Share - diluted | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Weighted-average Class A Shares outstanding - basic | |||||||||||||||||||||||
Weighted-average Class A Shares outstanding - diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Consolidated net (loss) income | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other Comprehensive (Loss) Income, Net of Tax | |||||||||||||||||||||||
Other comprehensive loss - currency translation adjustment | ( | ( | |||||||||||||||||||||
Comprehensive (Loss) Income | ( | ( | ( | ||||||||||||||||||||
Less: Comprehensive loss (income) attributable to noncontrolling interests | ( | ||||||||||||||||||||||
Comprehensive (Loss) Income Attributable to Sculptor Capital Management, Inc. | $ | ( | $ | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Number of Class A Shares | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Equity-based compensation | |||||||||||||||||||||||
Ending Balance | |||||||||||||||||||||||
Number of Class B Shares | |||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||
Equity-based compensation | ( | ||||||||||||||||||||||
Ending Balance | |||||||||||||||||||||||
Class A Shares Par Value | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Equity-based compensation | |||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | |||||||||||||||||||
Class B Shares Par Value | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Equity-based compensation | |||||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | |||||||||||||||||||
Additional Paid-in Capital | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Dividend equivalents on Class A restricted share units | ( | ||||||||||||||||||||||
Equity-based compensation, net of taxes | |||||||||||||||||||||||
Change in redemption value of Preferred Units | ( | ( | |||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Accumulated Deficit | |||||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Cash dividends declared on Class A Shares | ( | ( | ( | ||||||||||||||||||||
Dividend equivalents on Class A restricted share units | ( | ( | ( | ||||||||||||||||||||
Consolidated net (loss) income | ( | ( | ( | ||||||||||||||||||||
Ending Balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Currency translation adjustment | ( | ( | |||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | |||||||||||||||||||
Shareholders’ Deficit Attributable to Class A Shareholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Shareholders’ Equity Attributable to Noncontrolling Interests | |||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Currency translation adjustment | ( | ( | |||||||||||||||||||||
Capital contributions | |||||||||||||||||||||||
Capital distributions | ( | ( | ( | ( | |||||||||||||||||||
Equity-based compensation, net of taxes | |||||||||||||||||||||||
Consolidated net (loss) income | ( | ( | ( | ||||||||||||||||||||
Ending Balance | $ | $ | $ | $ | |||||||||||||||||||
Total Shareholders’ Equity | $ | $ | $ | $ | |||||||||||||||||||
Cash dividends paid on Class A Shares | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Consolidated net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile consolidated net loss to net cash provided by operating activities: | |||||||||||
Amortization of equity-based compensation | |||||||||||
Depreciation, amortization and net gains and losses on fixed assets | |||||||||||
Changes in fair value of warrant liabilities | |||||||||||
Net losses on retirement of debt | |||||||||||
Deferred income taxes | ( | ||||||||||
Non-cash lease expense | |||||||||||
Net gains on investments, net of dividends | ( | ( | |||||||||
Operating cash flows due to changes in: | |||||||||||
Income and fees receivable | |||||||||||
Due from related parties | ( | ||||||||||
Other assets, net | |||||||||||
Compensation payable | ( | ( | |||||||||
Unearned income and fees | |||||||||||
Tax receivable agreement liability | ( | ( | |||||||||
Operating lease liabilities | ( | ( | |||||||||
Other liabilities | ( | ||||||||||
Consolidated funds related items: | |||||||||||
Other assets of consolidated funds | ( | ( | |||||||||
Other liabilities of consolidated funds | |||||||||||
Net Cash Provided by Operating Activities | |||||||||||
Cash Flows from Investing Activities | |||||||||||
Purchases of fixed assets | ( | ( | |||||||||
Purchases of United States government obligations | ( | ( | |||||||||
Maturities and sales of United States government obligations | |||||||||||
Investments in funds | ( | ( | |||||||||
Return of investments in funds | |||||||||||
Net Cash Used in Investing Activities | ( | ( |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Cash Flows from Financing Activities | |||||||||||
Contributions from noncontrolling interests | |||||||||||
Distributions to noncontrolling interests | ( | ( | |||||||||
Dividends on Class A Shares | ( | ( | |||||||||
Proceeds from debt obligations, net of issuance costs | |||||||||||
Repayment of debt obligations, including prepayment costs | ( | ( | |||||||||
Proceeds from securities sold under agreements to repurchase, net of issuance costs | |||||||||||
Other, net | ( | ( | |||||||||
Net Cash Used in Financing Activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | ( | ||||||||||
Net change in cash and cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents and restricted cash, beginning of period | |||||||||||
Cash and Cash Equivalents and Restricted Cash, End of Period | $ | $ | |||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid during the period: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | $ | $ | |||||||||
Reconciliation of cash and cash equivalents and restricted cash: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total Cash and Cash Equivalents and Restricted Cash | $ | $ | |||||||||
As of September 30, 2021 | |||||
Sculptor Capital Management, Inc. | |||||
Class A Shares | |||||
Class B Shares | |||||
Warrants to purchase Class A Shares (Note 7) | |||||
Sculptor Operating Partnerships | |||||
Group A Units | |||||
Group A-1 Units | |||||
Group B Units | |||||
Group E Units | |||||
Group P Units |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Sculptor Capital LP | |||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Blended participation percentage | % | % | % | % | |||||||||||||||||||
Net Income (Loss) Attributable to Group A Units | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Sculptor Capital Advisors LP | |||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Blended participation percentage | % | % | % | % | |||||||||||||||||||
Net (Loss) Income Attributable to Group A Units | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Sculptor Capital Advisors II LP | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Blended participation percentage | % | % | % | % | |||||||||||||||||||
Net Income Attributable to Group A Units | $ | $ | $ | $ | |||||||||||||||||||
Total Sculptor Operating Group | |||||||||||||||||||||||
Net (loss) income | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Blended participation percentage | n/m | % | % | % | |||||||||||||||||||
Net (Loss) Income Attributable to Group A Units | $ | ( | $ | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Group A Units | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other | ( | ( | |||||||||||||||||||||
$ | ( | $ | $ | ( | $ | ( |
September 30, 2021 | December 31, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Group A Units | $ | $ | |||||||||
Other | |||||||||||
$ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
U.S. government obligations, at fair value | $ | $ | |||||||||
CLOs, at fair value | |||||||||||
Equity method investments | |||||||||||
Total Investments | $ | $ |
As of September 30, 2021 | |||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Assets, at Fair Value | |||||||||||||||||||||||
Included within investments: | |||||||||||||||||||||||
U.S. government obligations | $ | $ | $ | $ | |||||||||||||||||||
CLOs(1) | $ | $ | $ | $ | |||||||||||||||||||
Liabilities, at Fair Value | |||||||||||||||||||||||
Warrants | $ | $ | $ | $ | |||||||||||||||||||
As of December 31, 2020 | |||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Assets, at Fair Value | |||||||||||||||||||||||
Included within cash and cash equivalents: | |||||||||||||||||||||||
U.S. government obligations | $ | $ | $ | $ | |||||||||||||||||||
Included within investments: | |||||||||||||||||||||||
U.S. government obligations | $ | $ | $ | $ | |||||||||||||||||||
CLOs(1) | $ | $ | $ | $ | |||||||||||||||||||
Liabilities, at Fair Value | |||||||||||||||||||||||
Warrants | $ | $ | $ | $ | |||||||||||||||||||
June 30, 2021 | Purchases / Issuances | Investment Sales / Settlements | Gains / (Losses) Included in Earnings | Gains / (Losses) Included in Other Comprehensive Income | September 30, 2021 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Assets, at Fair Value | |||||||||||||||||||||||||||||||||||
Included within investments: | |||||||||||||||||||||||||||||||||||
CLOs | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Liabilities, at Fair Value | |||||||||||||||||||||||||||||||||||
Warrants | $ | $ | $ | $ | ( | $ | $ |
June 30, 2020 | Purchases / Issuances | Investment Sales / Settlements | Gains / (Losses) Included in Earnings | Gains / (Losses) Included in Other Comprehensive Income | September 30, 2020 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Assets, at Fair Value | |||||||||||||||||||||||||||||||||||
Included within investments: | |||||||||||||||||||||||||||||||||||
CLOs | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
December 31, 2020 | Purchases / Issuances | Investment Sales / Settlements | Gains / (Losses) Included in Earnings | Gains / (Losses) Included in Other Comprehensive Income | September 30, 2021 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Assets, at Fair Value | |||||||||||||||||||||||||||||||||||
Included within investments: | |||||||||||||||||||||||||||||||||||
CLOs | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Liabilities, at Fair Value | |||||||||||||||||||||||||||||||||||
Warrants | $ | $ | $ | $ | ( | $ | $ |
December 31, 2019 | Purchases / Issuances | Investment Sales / Settlements | Gains / (Losses) Included in Earnings | Gains / (Losses) Included in Other Comprehensive Income | September 30, 2020 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Assets, at Fair Value | |||||||||||||||||||||||||||||||||||
Included within investments: | |||||||||||||||||||||||||||||||||||
CLOs | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Assets, at Fair Value | |||||||||||||||||||||||
Included within investments: | |||||||||||||||||||||||
CLOs | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Liabilities, at Fair Value | |||||||||||||||||||||||
Warrants | $ | ( | $ | $ | ( | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Net assets of unconsolidated VIEs in which the Company has a variable interest | $ | $ | |||||||||
Maximum risk of loss as a result of the Company’s involvement with VIEs: | |||||||||||
Unearned income and fees | |||||||||||
Income and fees receivable | |||||||||||
Investments | |||||||||||
Maximum Exposure to Loss | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Lease Cost | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Short-term lease cost | |||||||||||||||||||||||
Finance lease cost - amortization of leased assets | |||||||||||||||||||||||
Finance lease cost - imputed interest on lease liabilities | |||||||||||||||||||||||
Less: Sublease income | ( | ( | ( | ( | |||||||||||||||||||
Net Lease Cost | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Supplemental Lease Cash Flow Information | |||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | |||||||||||||||||||||||
Operating cash flows for operating leases | $ | $ | $ | $ | |||||||||||||||||||
Operating cash flows for finance leases | $ | $ | $ | $ | |||||||||||||||||||
Finance cash flows for finance leases | $ | $ | $ | $ | |||||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations | |||||||||||||||||||||||
Operating leases | $ | $ | $ | $ | |||||||||||||||||||
Finance leases | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
Lease Term and Discount Rate | |||||||||||
Weighted average remaining lease term | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted average discount rate | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Operating Leases | Finance Leases | ||||||||||
(dollars in thousands) | |||||||||||
Maturity of Lease Liabilities - Contractual Payments | |||||||||||
October 1, 2021 to December 31, 2021 | $ | $ | |||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
Thereafter | |||||||||||
Total Lease Payments | |||||||||||
Imputed interest | ( | ( | |||||||||
Total Lease Liabilities - Contractual Payments | $ | $ |
Operating Leases | |||||
(dollars in thousands) | |||||
Sublease Rent - Contractual Payments | |||||
October 1, 2021 to December 31, 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total Sublease Rent - Contractual Payments | $ |
2020 Term Loan | CLO Investments Loans | Total | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Maturity of Debt Obligations | |||||||||||||||||
October 1, 2021 to December 31, 2021 | $ | $ | $ | ||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
2026 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total Payments | |||||||||||||||||
Unamortized discounts & deferred financing costs | ( | ( | ( | ||||||||||||||
Total Debt Obligations | $ | $ | $ |
Initial Borrowing Date | Contractual Rate | Final Maturity Date | Carrying Value | |||||||||||||||||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
June 7, 2017 | LIBOR plus | $ | $ | |||||||||||||||||||||||
August 2, 2017 | LIBOR plus | |||||||||||||||||||||||||
September 14, 2017 | EURIBOR plus | |||||||||||||||||||||||||
February 27, 2020 | EURIBOR plus | |||||||||||||||||||||||||
$ | $ |
Securities Sold under Agreements to Repurchase | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts of Liabilities in the Consolidated Balance Sheet | Securities Transferred | Net Amount | |||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
As of September 30, 2021 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
As of December 31, 2020 | $ | $ | $ | $ | $ |
Investments in CLOs | ||||||||||||||||||||||||||||||||
Securities Sold under Agreements to Repurchase | Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater Than 90 Days | Total | |||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
As of September 30, 2021 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
As of December 31, 2020 | $ | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Fixed Assets: | |||||||||||
Leasehold improvements | $ | $ | |||||||||
Computer hardware and software | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Fixed assets, net | |||||||||||
Goodwill | |||||||||||
Prepaid expenses | |||||||||||
Other | |||||||||||
Total Other Assets, Net | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Accrued expenses | $ | $ | |||||||||
Uncertain tax positions | |||||||||||
Due to funds1 | |||||||||||
Unused trade commissions | |||||||||||
Other | |||||||||||
Total Other Liabilities | $ | $ |
Three Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Management Fees | Incentive Income | Management Fees | Incentive Income | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Multi-strategy funds | $ | $ | $ | $ | |||||||||||||||||||
Credit | |||||||||||||||||||||||
Opportunistic credit funds | |||||||||||||||||||||||
Institutional Credit Strategies | |||||||||||||||||||||||
Real estate funds | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Management Fees | Incentive Income | Management Fees | Incentive Income | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Multi-strategy funds | $ | $ | $ | $ | |||||||||||||||||||
Credit | |||||||||||||||||||||||
Opportunistic credit funds | |||||||||||||||||||||||
Institutional Credit Strategies | |||||||||||||||||||||||
Real estate funds | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Management fees | $ | $ | |||||||||
Incentive income | |||||||||||
Income and Fees Receivable | $ | $ |
September 30, 2021 | December 31, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Management fees | $ | $ | |||||||||
Incentive income | |||||||||||
Unearned Income and Fees | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Statutory U.S. federal income tax rate | % | % | % | % | |||||||||||||||||||
Loss (income) passed through to noncontrolling interests | % | - | % | - | % | - | % | ||||||||||||||||
Foreign income taxes | % | % | - | % | - | % | |||||||||||||||||
RSU excess income tax benefit or expense | % | % | - | % | - | % | |||||||||||||||||
State and local income taxes | % | % | - | % | % | ||||||||||||||||||
Nondeductible amortization of Partner Equity Units | % | % | - | % | - | % | |||||||||||||||||
Nondeductible interest expense | % | % | % | - | % | ||||||||||||||||||
Foreign tax credits and deductions | - | % | - | % | % | % | |||||||||||||||||
Change in fair value of warrants | % | % | - | % | % | ||||||||||||||||||
Disallowed executive compensation | % | % | - | % | - | % | |||||||||||||||||
Other, net | - | % | - | % | - | % | - | % | |||||||||||||||
Effective Income Tax Rate | % | % | - | % | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Occupancy and equipment | $ | $ | $ | $ | |||||||||||||||||||
Information processing and communications | |||||||||||||||||||||||
Recurring placement and related service fees | |||||||||||||||||||||||
Professional services | |||||||||||||||||||||||
Impairment of right-of-use asset1 | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
Business development | |||||||||||||||||||||||
Other expenses | |||||||||||||||||||||||
Legal provisions | |||||||||||||||||||||||
Total General, Administrative and Other | $ | $ | $ | $ |
Three Months Ended September 30, 2021 | Net Loss Attributable to Class A Shareholders | Weighted- Average Class A Shares Outstanding | Loss Per Class A Share | Number of Antidilutive Units and Warrants Excluded from Diluted Calculation | |||||||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||||||||
Basic | $ | ( | $ | ( | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Group A Units | |||||||||||||||||||||||
Group E Units | |||||||||||||||||||||||
RSUs | |||||||||||||||||||||||
Warrants | |||||||||||||||||||||||
Diluted | $ | ( | $ | ( |
Three Months Ended September 30, 2020 | Net Income Attributable to Class A Shareholders | Weighted- Average Class A Shares Outstanding | Earnings Per Class A Share | Number of Antidilutive Units Excluded from Diluted Calculation | |||||||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||||||||
Basic | $ | $ | |||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Group A Units | |||||||||||||||||||||||
Group E Units | |||||||||||||||||||||||
RSUs | |||||||||||||||||||||||
Diluted | $ | $ |
Nine Months Ended September 30, 2021 | Net Loss Attributable to Class A Shareholders | Weighted- Average Class A Shares Outstanding | Loss Per Class A Share | Number of Antidilutive Units and Warrants Excluded from Diluted Calculation | |||||||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||||||||
Basic | $ | ( | $ | ( | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Group A Units | ( | ||||||||||||||||||||||
Group E Units | |||||||||||||||||||||||
RSUs | |||||||||||||||||||||||
Warrants | |||||||||||||||||||||||
Diluted | $ | ( | $ | ( |
Nine Months Ended September 30, 2020 | Net Loss Attributable to Class A Shareholders | Weighted- Average Class A Shares Outstanding | Loss Per Class A Share | Number of Antidilutive Units Excluded from Diluted Calculation | |||||||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||||||||
Basic | $ | ( | $ | ( | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Group A Units | ( | ||||||||||||||||||||||
Group E Units | |||||||||||||||||||||||
RSUs | |||||||||||||||||||||||
Diluted | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Fees charged on investments held by related parties: | |||||||||||||||||||||||
Management fees | $ | $ | $ | $ | |||||||||||||||||||
Incentive income | $ | $ | $ | $ |
Potential Payments Under Tax Receivable Agreement | |||||
(dollars in thousands) | |||||
October 1, 2021 to December 31, 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total Payments | $ |
Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||
June 30, 2021 | Inflows / (Outflows) | Distributions / Other Reductions | Appreciation / (Depreciation) | Other(1) | September 30, 2021 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Multi-strategy funds | $ | 11,305,792 | $ | (42,392) | $ | — | $ | 193,142 | $ | — | $ | 11,456,542 | |||||||||||||||||||||||
Credit | |||||||||||||||||||||||||||||||||||
Opportunistic credit funds | 6,467,414 | (66,337) | (6,639) | 138,453 | — | 6,532,891 | |||||||||||||||||||||||||||||
Institutional Credit Strategies | 15,654,998 | 445,433 | (825,308) | 163 | (138,311) | 15,136,975 | |||||||||||||||||||||||||||||
Real estate funds | 4,375,845 | 78,285 | (118,247) | (3,833) | — | 4,332,050 | |||||||||||||||||||||||||||||
Total | $ | 37,804,049 | $ | 414,989 | $ | (950,194) | $ | 327,925 | $ | (138,311) | $ | 37,458,458 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
June 30, 2020 | Inflows / (Outflows) | Distributions / Other Reductions | Appreciation / (Depreciation) | Other(1) | September 30, 2020 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Multi-strategy funds | $ | 9,401,759 | $ | (54,445) | $ | — | $ | 605,980 | $ | — | $ | 9,953,294 | |||||||||||||||||||||||
Credit | |||||||||||||||||||||||||||||||||||
Opportunistic credit funds | 5,880,126 | 93,403 | (177,918) | 245,548 | — | 6,041,159 | |||||||||||||||||||||||||||||
Institutional Credit Strategies | 15,399,296 | 33 | (194,562) | 531 | 85,669 | 15,290,967 | |||||||||||||||||||||||||||||
Real estate funds | 4,736,544 | 669 | (44,818) | 5,770 | — | 4,698,165 | |||||||||||||||||||||||||||||
Other | 770 | — | (770) | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 35,418,495 | $ | 39,660 | $ | (418,068) | $ | 857,829 | $ | 85,669 | $ | 35,983,585 |
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||
December 31, 2020 | Inflows / (Outflows) | Distributions / Other Reductions | Appreciation / (Depreciation) | Other(1) | September 30, 2021 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Multi-strategy funds | $ | 10,504,024 | $ | 155,000 | $ | (759) | $ | 798,277 | $ | — | $ | 11,456,542 | |||||||||||||||||||||||
Credit | |||||||||||||||||||||||||||||||||||
Opportunistic credit funds | 6,287,777 | (490,748) | (17,600) | 753,462 | — | 6,532,891 | |||||||||||||||||||||||||||||
Institutional Credit Strategies | 15,697,827 | 1,480,827 | (1,593,850) | 580 | (448,409) | 15,136,975 | |||||||||||||||||||||||||||||
Real estate funds | 4,308,648 | 456,705 | (431,070) | (2,233) | — | 4,332,050 | |||||||||||||||||||||||||||||
Total | $ | 36,798,276 | $ | 1,601,784 | $ | (2,043,279) | $ | 1,550,086 | $ | (448,409) | $ | 37,458,458 |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
December 31, 2019 | Inflows / (Outflows) | Distributions / Other Reductions | Appreciation / (Depreciation) | Other(1) | September 30, 2020 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Multi-strategy funds | $ | 9,332,118 | $ | (372,659) | $ | (17,819) | $ | 1,011,654 | $ | — | $ | 9,953,294 | |||||||||||||||||||||||
Credit | |||||||||||||||||||||||||||||||||||
Opportunistic credit funds | 6,025,306 | 286,165 | (177,933) | (92,379) | — | 6,041,159 | |||||||||||||||||||||||||||||
Institutional Credit Strategies | 15,710,319 | 406,755 | (813,438) | 224 | (12,893) | 15,290,967 | |||||||||||||||||||||||||||||
Real estate funds | 3,393,876 | 1,422,774 | (114,087) | (4,398) | — | 4,698,165 | |||||||||||||||||||||||||||||
Other | 8,311 | 20 | (8,331) | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 34,469,930 | $ | 1,743,055 | $ | (1,131,608) | $ | 915,101 | $ | (12,893) | $ | 35,983,585 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Weighted-average assets under management | $ | 37,428,049 | $ | 35,215,556 | $ | 36,712,865 | $ | 34,448,513 | |||||||||||||||
Average management fee rates | 0.76 | % | 0.72 | % | 0.77 | % | 0.70 | % |
Returns for the Nine Months Ended September 30, | Annualized Returns Since Inception Through September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Assets Under Management as of September 30, | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||||||||||
Fund | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
Sculptor Master Fund(1) | $ | 10,476,043 | $ | 9,136,360 | 10.5 | % | 7.4 | % | 16.8 | % | 12.4 | % | 16.8 | % | (2) | 11.7 | % | (2) | ||||||||||||||||||||||||||||||||
Sculptor Enhanced Master Fund | 970,031 | 787,563 | 7.6 | % | 5.2 | % | 15.7 | % | 11.7 | % | 15.0 | % | 10.4 | % | ||||||||||||||||||||||||||||||||||||
Other funds | 10,468 | 29,371 | n/m | n/m | n/m | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||||||||||
$ | 11,456,542 | $ | 9,953,294 |
Assets Under Management as of September 30, | |||||||||||
2021 | 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Opportunistic credit funds | $ | 6,532,891 | $ | 6,041,159 | |||||||
Institutional Credit Strategies | 15,136,975 | 15,290,967 | |||||||||
$ | 21,669,866 | $ | 21,332,126 |
Returns for the Nine Months Ended September 30, | Annualized Returns Since Inception Through September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Assets Under Management as of September 30, | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||||||||||||
Fund | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Sculptor Credit Opportunities Master Fund(1) | $ | 2,321,291 | $ | 1,888,511 | 18.3 | % | 14.4 | % | -5.6 | % | -7.5 | % | 14.2 | % | 10.1 | % | |||||||||||||||||||||||||||||||
Customized Credit Focused Platform | 3,878,535 | 3,279,505 | See below for return information on our Customized Credit Focused Platform. | ||||||||||||||||||||||||||||||||||||||||||||
Closed-end opportunistic credit funds | 333,065 | 349,006 | See below for return information on our closed-end opportunistic credit funds. | ||||||||||||||||||||||||||||||||||||||||||||
Other funds | — | 524,137 | n/m | n/m | n/m | n/m | n/m | n/m | |||||||||||||||||||||||||||||||||||||||
$ | 6,532,891 | $ | 6,041,159 |
Weighted Average Return for the Nine Months Ended September 30,(2) | Inception to Date as of September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | IRR | Net Invested Capital Multiple(5) | ||||||||||||||||||||||||||||||||||||||
Customized Credit Focused Platform | Gross | Net | Gross | Net | Gross(3) | Net(4) | |||||||||||||||||||||||||||||||||||
Opportunistic Credit Performance(1) | 17.8 | % | 14.1 | % | 3.1 | % | 2.3 | % | 16.0 | % | 12.3 | % | 2.6x |
Assets Under Management as of September 30, | Inception to Date as of September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Total Commitments | Total Invested Capital(1) | Gross IRR(2) | Net IRR(3) | Gross MOIC(4) | |||||||||||||||||||||||||||||||||||
Fund (Investment Period) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Sculptor European Credit Opportunities Fund (2012-2015) | $ | — | $ | — | $ | 459,600 | $ | 305,487 | 15.7 | % | 11.8 | % | 1.5x | ||||||||||||||||||||||||||||
Sculptor Structured Products Domestic Fund II (2011-2014) | 8,534 | 15,986 | 326,850 | 326,850 | 19.4 | % | 15.3 | % | 2.1x | ||||||||||||||||||||||||||||||||
Sculptor Structured Products Offshore Fund II (2011-2014) | 8,125 | 14,659 | 304,531 | 304,531 | 16.8 | % | 13.1 | % | 1.9x | ||||||||||||||||||||||||||||||||
Sculptor Structured Products Offshore Fund I (2010-2013) | 3,373 | 4,315 | 155,098 | 155,098 | 23.8 | % | 19.1 | % | 2.1x | ||||||||||||||||||||||||||||||||
Sculptor Structured Products Domestic Fund I (2010-2013) | 4,184 | 3,957 | 99,986 | 99,986 | 22.6 | % | 18.0 | % | 2.0x | ||||||||||||||||||||||||||||||||
Other funds | 308,849 | 310,089 | 309,000 | 140,739 | n/m | n/m | n/m | ||||||||||||||||||||||||||||||||||
$ | 333,065 | $ | 349,006 | $ | 1,655,065 | $ | 1,332,691 |
Most Recent Launch or Refinancing Year | Assets Under Management as of September 30, | ||||||||||||||||||||||
Deal Size | 2021 | 2020 | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Collateralized loan obligations | 2017 | $ | 2,269,082 | $ | 1,610,120 | $ | 1,643,275 | ||||||||||||||||
2018 | 6,920,173 | 6,106,647 | 6,601,668 | ||||||||||||||||||||
2019 | 1,115,396 | 463,456 | 1,073,495 | ||||||||||||||||||||
2020 | 1,868,287 | 1,703,807 | 1,433,921 | ||||||||||||||||||||
2021 | 4,680,601 | 3,964,836 | 3,209,415 | ||||||||||||||||||||
16,853,539 | 13,848,866 | 13,961,774 | |||||||||||||||||||||
Aircraft securitization vehicles | 2018 | 696,000 | 447,999 | 475,415 | |||||||||||||||||||
2019 | 1,128,000 | 323,089 | 381,680 | ||||||||||||||||||||
2020 | 472,732 | 171,372 | 183,122 | ||||||||||||||||||||
2,296,732 | 942,460 | 1,040,217 | |||||||||||||||||||||
Collateralized bond obligation | 2019 | 349,550 | 273,987 | 274,632 | |||||||||||||||||||
Other funds | n/a | n/a | 71,662 | 14,344 | |||||||||||||||||||
$ | 19,499,821 | $ | 15,136,975 | $ | 15,290,967 |
Assets Under Management as of September 30, | |||||||||||
2021 | 2020 | ||||||||||
Fund (Investment Period) | (dollars in thousands) | ||||||||||
Sculptor Real Estate Fund II (2011-2014) | $ | 26,148 | $ | 60,550 | |||||||
Sculptor Real Estate Fund III (2014-2019) | 332,515 | 474,133 | |||||||||
Sculptor Real Estate Fund IV (2019-2023) | 2,593,280 | 2,593,233 | |||||||||
Sculptor Real Estate Credit Fund I (2015-2020) | 354,588 | 730,931 | |||||||||
Co-investment and other funds | 1,025,519 | 839,318 | |||||||||
$ | 4,332,050 | $ | 4,698,165 |
Inception to Date as of September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Investments | Realized/Partially Realized Investments(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Commitments | Invested Capital(2) | Total Value(3) | Gross IRR(4) | Net IRR(5) | Gross MOIC(6) | Invested Capital | Total Value | Gross IRR(4) | Gross MOIC(6) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fund | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sculptor Real Estate Fund I | $ | 408,081 | $ | 386,298 | $ | 847,612 | 25.5 | % | 16.1 | % | 2.2x | $ | 386,298 | $ | 847,612 | 25.5 | % | 2.2x | |||||||||||||||||||||||||||||||||||||||||
Sculptor Real Estate Fund II | 839,508 | 762,588 | 1,585,106 | 32.8 | % | 21.6 | % | 2.1x | 762,588 | 1,585,106 | 32.8 | % | 2.1x | ||||||||||||||||||||||||||||||||||||||||||||||
Sculptor Real Estate Fund III | 1,500,000 | 1,101,784 | 1,898,503 | 28.0 | % | 18.6 | % | 1.7x | 889,483 | 1,619,875 | 32.1 | % | 1.8x | ||||||||||||||||||||||||||||||||||||||||||||||
Sculptor Real Estate Fund IV(7) | 2,596,024 | 382,017 | 541,207 | n/m | n/m | n/m | 161,730 | 268,404 | n/m | n/m | |||||||||||||||||||||||||||||||||||||||||||||||||
Sculptor Real Estate Credit Fund I | 736,225 | 624,633 | 755,111 | 17.8 | % | 12.3 | % | 1.2x | 274,660 | 364,726 | 20.6 | % | 1.3x | ||||||||||||||||||||||||||||||||||||||||||||||
Co-investment and other funds | 1,334,402 | 914,128 | 1,119,844 | n/m | n/m | n/m | 188,232 | 333,798 | n/m | n/m | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | 7,414,240 | $ | 4,171,448 | $ | 6,747,383 | $ | 2,662,991 | $ | 5,019,521 |
Unrealized Investments as of September 30, 2021 | |||||||||||||||||
Invested Capital | Total Value | Gross MOIC(6) | |||||||||||||||
Fund | (dollars in thousands) | ||||||||||||||||
Sculptor Real Estate Fund I | $ | — | $ | — | — | ||||||||||||
Sculptor Real Estate Fund II | — | — | — | ||||||||||||||
Sculptor Real Estate Fund III | 212,301 | 278,628 | 1.3x | ||||||||||||||
Sculptor Real Estate Fund IV(7) | 220,287 | 272,802 | n/m | ||||||||||||||
Sculptor Real Estate Credit Fund I | 349,973 | 390,385 | 1.1x | ||||||||||||||
Co-investment and other funds | 725,896 | 786,046 | n/m | ||||||||||||||
$ | 1,508,457 | $ | 1,727,861 |
September 30, 2021 | December 31, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Multi-strategy funds | $ | 719,790 | $ | 463,681 | |||||||
Credit | |||||||||||
Opportunistic credit funds | 4,705,373 | 4,250,444 | |||||||||
Institutional Credit Strategies | 15,121,877 | 15,683,304 | |||||||||
Real estate funds | 4,332,049 | 4,308,648 | |||||||||
$ | 24,879,089 | $ | 24,706,077 |
December 31, 2020 | Recognized Incentive Income | Performance | September 30, 2021 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Multi-strategy funds | $ | 14,932 | $ | (3,844) | $ | 11,735 | $ | 22,823 | |||||||||||||||
Credit | |||||||||||||||||||||||
Opportunistic credit funds | 14,925 | (2,961) | 102,798 | 114,762 | |||||||||||||||||||
Real estate funds | 98,371 | (14,833) | 31,458 | 114,996 | |||||||||||||||||||
$ | 128,228 | $ | (21,638) | $ | 145,991 | $ | 252,581 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Net (Loss) Income Attributable to Class A Shareholders | $ | (4,338) | $ | 8,017 | $ | (2,817) | $ | (45,489) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Management fees | $ | 76,820 | $ | 68,053 | $ | 227,391 | $ | 195,389 | |||||||||||||||
Incentive income | 27,031 | 41,525 | 134,379 | 89,085 | |||||||||||||||||||
Other revenues | 1,786 | 2,316 | 5,145 | 7,693 | |||||||||||||||||||
Income of consolidated funds | — | 58 | 3 | 90 | |||||||||||||||||||
Total Revenues | $ | 105,637 | $ | 111,952 | $ | 366,918 | $ | 292,257 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Compensation and benefits | $ | 53,078 | $ | 65,030 | $ | 201,759 | $ | 197,739 | |||||||||||||||
Interest expense | 3,277 | 4,488 | 12,280 | 14,944 | |||||||||||||||||||
General, administrative and other | 39,672 | 26,465 | 92,070 | 203,786 | |||||||||||||||||||
Expenses of consolidated funds | — | 34 | 2 | 53 | |||||||||||||||||||
Total Expenses | $ | 96,027 | $ | 96,017 | $ | 306,111 | $ | 416,522 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Changes in fair value of warrant liabilities | $ | (12,710) | $ | — | $ | (50,885) | $ | — | |||||||||||||||
Changes in tax receivable agreement liability | (39) | — | (18) | 278 | |||||||||||||||||||
Net losses on retirement of debt | — | — | (30,198) | (693) | |||||||||||||||||||
Net gains on investments | 5,068 | 8,157 | 16,685 | 3,266 | |||||||||||||||||||
Total Other (Loss) Income | $ | (7,681) | $ | 8,157 | $ | (64,416) | $ | 2,851 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Income taxes | $ | 8,653 | $ | 9,397 | $ | 19,985 | $ | (17,971) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Group A Units | $ | (2,553) | $ | 4,494 | $ | (22,416) | $ | (62,973) | |||||||||||||||
Other | 167 | (101) | 1,639 | (579) | |||||||||||||||||||
Total | $ | (2,386) | $ | 4,393 | $ | (20,777) | $ | (63,552) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Economic Income | $ | 44,049 | $ | 42,428 | $ | 160,096 | $ | (39,514) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Economic Income Basis | |||||||||||||||||||||||
Management fees | $ | 71,675 | $ | 63,477 | $ | 211,648 | $ | 179,771 | |||||||||||||||
Incentive income | 27,031 | 41,548 | 134,380 | 89,121 | |||||||||||||||||||
Other revenues | 1,786 | 2,316 | 5,145 | 7,693 | |||||||||||||||||||
Total Economic Income Revenues | $ | 100,492 | $ | 107,341 | $ | 351,173 | $ | 276,585 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Economic Income Basis | |||||||||||||||||||||||
Compensation and benefits | $ | 34,445 | $ | 41,338 | $ | 122,768 | $ | 122,378 | |||||||||||||||
Interest expense | 3,038 | 3,657 | 11,256 | 11,462 | |||||||||||||||||||
General, administrative and other expenses | 18,960 | 19,917 | 57,053 | 182,259 | |||||||||||||||||||
Total Economic Income Expenses | $ | 56,443 | $ | 64,912 | $ | 191,077 | $ | 316,099 |
Class A Shares | ||||||||||||||
Payment Date | Record Date | Dividend per Share | ||||||||||||
August 24, 2021 | August 17, 2021 | $ | 0.54 | |||||||||||
May 25, 2021 | May 18, 2021 | $ | 0.30 | |||||||||||
March 4, 2021 | February 25, 2021 | $ | 2.35 | |||||||||||
March 3, 2020 | February 25, 2020 | $ | 0.53 | |||||||||||
Three Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Net (Loss) Income Attributable to Class A Shareholders—GAAP | $ | (4,338) | $ | 8,017 | |||||||
Change in redemption value of Preferred Units | — | 2,285 | |||||||||
Net (Loss) Income Allocated to Sculptor Capital Management, Inc.—GAAP | (4,338) | 10,302 | |||||||||
Net (loss) income allocated to Group A Units | (2,553) | 4,494 | |||||||||
Equity-based compensation, net of RSUs settled in cash | 11,170 | 17,972 | |||||||||
Adjustment to recognize deferred cash compensation in the period of grant | 6,493 | 4,996 | |||||||||
2020 Term Loan and Debt Securities non-cash discount accretion | 239 | 831 | |||||||||
Income taxes | 8,653 | 9,397 | |||||||||
Changes in fair value of warrant liabilities | 12,710 | — | |||||||||
Net gains on investments | (5,068) | (8,158) | |||||||||
Impairment of right-of-use asset | 11,240 | — | |||||||||
Adjustment for expenses related to compensation and profit-sharing arrangements based on fund investment performance | 970 | 724 | |||||||||
Changes in tax receivable agreement liability | 39 | — | |||||||||
Depreciation, amortization and net gains and losses on fixed assets | 4,130 | 1,442 | |||||||||
Other adjustments | 364 | 428 | |||||||||
Economic Income—Non-GAAP | $ | 44,049 | $ | 42,428 |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Net Loss Attributable to Class A Shareholders—GAAP | $ | (2,817) | $ | (45,489) | |||||||
Change in redemption value of Preferred Units | — | 5,598 | |||||||||
Net Loss Allocated to Sculptor Capital Management, Inc.—GAAP | (2,817) | (39,891) | |||||||||
Net loss allocated to Group A Units | (22,416) | (62,973) | |||||||||
Equity-based compensation, net of RSUs settled in cash | 53,394 | 60,011 | |||||||||
Adjustment to recognize deferred cash compensation in the period of grant | 21,230 | 13,109 | |||||||||
2020 Term Loan and Debt Securities non-cash discount accretion | 1,024 | 3,482 | |||||||||
Income taxes | 19,985 | (17,971) | |||||||||
Changes in fair value of warrant liabilities | 50,885 | — | |||||||||
Net losses on retirement of debt | 30,198 | 693 | |||||||||
Net gains on investments | (16,685) | (3,266) | |||||||||
Impairment of right-of-use asset | 11,240 | — | |||||||||
Adjustment for expenses related to compensation and profit-sharing arrangements based on fund investment performance | 4,367 | 2,241 | |||||||||
Changes in tax receivable agreement liability | 18 | (278) | |||||||||
Depreciation, amortization and net gains and losses on fixed assets | 7,439 | 5,379 | |||||||||
Other adjustments | 2,234 | (50) | |||||||||
Economic Income—Non-GAAP | $ | 160,096 | $ | (39,514) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Management fees—GAAP | $ | 76,820 | $ | 68,053 | $ | 227,391 | $ | 195,389 | |||||||||||||||
Adjustment to management fees(1) | (5,145) | (4,576) | (15,743) | (15,618) | |||||||||||||||||||
Management Fees—Economic Income Basis—Non-GAAP | 71,675 | 63,477 | 211,648 | 179,771 | |||||||||||||||||||
Incentive income—Economic Income Basis—GAAP | 27,031 | 41,525 | 134,379 | 89,085 | |||||||||||||||||||
Adjustment to incentive income(2) | — | 23 | 1 | 36 | |||||||||||||||||||
Incentive Income—Economic Income Basis—GAAP and Non-GAAP | 27,031 | 41,548 | 134,380 | 89,121 | |||||||||||||||||||
Other Revenues—Economic Income Basis—GAAP and Non-GAAP | 1,786 | 2,316 | 5,145 | 7,693 | |||||||||||||||||||
Total Revenues—Economic Income Basis—Non-GAAP | $ | 100,492 | $ | 107,341 | $ | 351,173 | $ | 276,585 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Compensation and benefits—GAAP | $ | 53,078 | $ | 65,030 | $ | 201,759 | $ | 197,739 | |||||||||||||||
Adjustment to compensation and benefits(1) | (18,633) | (23,692) | (78,991) | (75,361) | |||||||||||||||||||
Compensation and Benefits—Economic Income Basis—Non-GAAP | $ | 34,445 | $ | 41,338 | $ | 122,768 | $ | 122,378 | |||||||||||||||
Interest expense—GAAP | $ | 3,277 | $ | 4,488 | $ | 12,280 | $ | 14,944 | |||||||||||||||
Adjustment to interest expense(2) | (239) | (831) | (1,024) | (3,482) | |||||||||||||||||||
Interest Expense—Economic Income Basis—Non-GAAP | $ | 3,038 | $ | 3,657 | $ | 11,256 | $ | 11,462 | |||||||||||||||
General, administrative and other expenses—GAAP | $ | 39,672 | $ | 26,465 | $ | 92,070 | $ | 203,786 | |||||||||||||||
Adjustment to general, administrative and other expenses(3) | (20,712) | (6,548) | (35,017) | (21,527) | |||||||||||||||||||
General, Administrative and Other Expenses—Economic Income Basis—Non-GAAP | $ | 18,960 | $ | 19,917 | $ | 57,053 | $ | 182,259 |
From October 1, 2018 to September 30, 2021 | |||||
(dollars in thousands) | |||||
Net income attributable to Class A shareholders | $ | 218,302 | |||
Change in redemption value of Preferred Units | (37,412) | ||||
Net Income Allocated to Sculptor Capital Management, Inc. | 180,890 | ||||
Net loss allocated to Group A Units | (72,965) | ||||
Equity-based compensation, net of RSUs settled in cash | 272,339 | ||||
Adjustment to recognize deferred cash compensation in the period of grant | (13,792) | ||||
2020 Term Loan and Debt Securities non-cash discount accretion | 19,746 | ||||
Income taxes | 142,241 | ||||
Changes in fair value of warrant liabilities | 58,433 | ||||
Net losses on retirement of debt | 41,584 | ||||
Net gains on investments | (29,346) | ||||
Impairment of right-of-use asset | 11,240 | ||||
Adjustment for expenses related to compensation and profit-sharing arrangements based on fund investment performance | (2,429) | ||||
Changes in tax receivable agreement liability | (4,422) | ||||
Depreciation, amortization and net gains and losses on fixed assets | 25,611 | ||||
Other adjustments | 3,619 | ||||
Less: Dividends paid on 2019 Preferred Units | (6,952) | ||||
Less: Dividends to Class A Shareholders declared with respect to such periods | (115,355) | ||||
Distribution Holiday Economic Income—Non-GAAP | $ | 510,442 |
101* | The following financial information from the Quarterly Report on Form 10-Q for the three months ended September 30, 2021, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Comprehensive Income (Loss); (iv) Consolidated Statements of Changes in Shareholders’ Equity (Deficit); (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements. | |||||||
104* | Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101) | |||||||
* | Filed herewith | |||||||
** | Certain schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. | |||||||
+ | Management contract or compensatory plan or arrangement |
SCULPTOR CAPITAL MANAGEMENT, INC. | |||||||||||
By: | /s/ Dava Ritchea | ||||||||||
Dava Ritchea | |||||||||||
Chief Financial Officer and Executive Managing Director |
Date: | November 5, 2021 | /s/ James S. Levin | ||||||||||||
Name: | James S. Levin | |||||||||||||
Title: | Chief Executive Officer and Executive Managing Director |
Date: | November 5, 2021 | /s/ Dava Ritchea | ||||||||||||
Name: | Dava Ritchea | |||||||||||||
Title: | Chief Financial Officer and Executive Managing Director |
Date: | November 5, 2021 | /s/ James S. Levin | ||||||||||||
Name: | James S. Levin | |||||||||||||
Title: | Chief Executive Officer and Executive Managing Director | |||||||||||||
Date: | November 5, 2021 | /s/ Dava Ritchea | ||||||||||||
Name: | Dava Ritchea | |||||||||||||
Title: | Chief Financial Officer and Executive Managing Director |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Investments measured at fair value | $ 458,106 | $ 309,805 |
Assets sold under agreements to repurchase at fair value | $ 161,013 | $ 123,616 |
Class A Shares | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 25,216,856 | 22,903,571 |
Common stock, shares outstanding (in shares) | 25,216,856 | 22,903,571 |
Class B Shares | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 32,887,882 | 32,824,538 |
Common stock, shares outstanding (in shares) | 32,887,882 | 32,824,538 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Consolidated net loss | $ (6,724) | $ 14,695 | $ (23,594) | $ (103,443) |
Other Comprehensive (Loss) Income, Net of Tax | ||||
Other comprehensive loss - currency translation adjustment | (565) | 0 | (1,248) | 0 |
Comprehensive (Loss) Income | (7,289) | 14,695 | (24,842) | (103,443) |
Less: Comprehensive loss (income) attributable to noncontrolling interests | 2,678 | (4,393) | 21,439 | 63,552 |
Comprehensive (Loss) Income Attributable to Sculptor Capital Management, Inc. | $ (4,611) | $ 10,302 | $ (3,403) | $ (39,891) |
Organization |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization | ORGANIZATION Sculptor Capital Management, Inc. (the “Registrant”), a Delaware corporation, together with its consolidated subsidiaries (collectively, the “Company” or “Sculptor Capital”), is a global alternative asset management firm providing investment products in a range of areas, including multi-strategy, credit and real estate. With offices in New York, London, Hong Kong and Shanghai, the Company serves global clients through commingled funds, separate accounts and specialized products (collectively, the “funds”). Sculptor Capital’s distinct investment process seeks to generate attractive and consistent risk-adjusted returns across market cycles through a combination of bottom-up fundamental analysis, a high degree of flexibility, a collaborative team and integrated risk management. The Company’s capabilities span all major geographies, in strategies including fundamental equities, corporate credit, real estate debt and equity, merger arbitrage and structured credit. The Company manages multi-strategy funds, dedicated credit funds, including opportunistic credit funds and Institutional Credit Strategies products, real estate funds and other alternative investment vehicles. Through Institutional Credit Strategies, the Company’s asset management platform that invests in performing credits, the Company manages collateralized loan obligations (“CLOs”), aircraft securitization vehicles, collateralized bond obligations (“CBOs”), commingled products and other customized solutions for clients. The Company’s primary sources of revenues are management fees, which are generally based on the amount of the Company’s assets under management, and incentive income, which is based on the investment performance of its funds. Accordingly, for any given period, the Company’s revenues will be driven by the combination of assets under management and the investment performance of the funds. The Company conducts its business and generates substantially all of its revenues primarily in the United States (the “U.S.”) through one operating and reportable segment. The single reportable segment reflects how the Company’s chief operating decision makers allocate resources, make operating decisions and assess financial performance on a consolidated basis under the Company’s ‘one-firm approach,’ which includes operating collaboratively across business lines, with predominantly a single expense pool. The Company conducts its operations through Sculptor Capital LP, Sculptor Capital Advisors LP and Sculptor Capital Advisors II LP (collectively, the “Sculptor Operating Partnerships” and collectively with their consolidated subsidiaries, the “Sculptor Operating Group”). The Registrant holds its interests in the Sculptor Operating Group indirectly through Sculptor Capital Holding Corporation (“Sculptor Corp”), a wholly owned subsidiary of the Registrant. References to the Company’s “executive managing directors” include the current executive managing directors of the Company, and, except where the context requires otherwise, also include certain former executive managing directors who are no longer active in the Company’s business. References to the Company’s “active executive managing directors” refer to executive managing directors who remain active in the Company’s business. Company Structure The Registrant is a holding company that, through Sculptor Corp, holds equity ownership interests in the Sculptor Operating Group. The Registrant had issued and outstanding the following share classes: •Class A Shares—Class A Shares are publicly traded and entitle the holders thereof to one vote per share on matters submitted to a vote of shareholders. The holders of Class A Shares are entitled to any distributions declared on the Class A Shares by the Registrant’s Board of Directors. •Class B Shares—Class B Shares are held by executive managing directors, as further discussed below. These shares are not publicly traded but rather entitle the executive managing directors to one vote per share on matters submitted to a vote of shareholders. These shares do not participate in the earnings of the Registrant, as the executive managing directors participate in the related economics of the Sculptor Operating Group through their direct ownership in the Sculptor Operating Group, subject to the Distribution Holiday discussed below. The Company conducts its operations through the Sculptor Operating Group. The following is a list of the outstanding units of the Sculptor Operating Partnerships as of September 30, 2021: •Group A Units—Group A Units are limited partner interests issued to certain executive managing directors. In connection with the Recapitalization, as defined below, the Sculptor Operating Partnerships initiated a distribution holiday (the “Distribution Holiday”). Holders of Group A Units do not receive distributions on such units during the Distribution Holiday. Each executive managing director may exchange his or her vested and booked-up (as defined below) Group A Units for an equal number of Class A Shares (or the cash equivalent thereof) over a period of two years in three equal installments commencing upon the final day of the Distribution Holiday and on each of the first and second anniversary thereof (or, for units that become vested and booked-up Group A Units after the final day of the Distribution Holiday, from the later of the date on which they would have been exchangeable in accordance with the foregoing and the date on which they become vested and booked-up Group A Units) (and thereafter such units will remain exchangeable), in each case, subject to certain restrictions. A “book-up” is achieved when sufficient appreciation has occurred to meet a prescribed capital account book-up target under the terms of the Sculptor Operating Partnership limited partnership agreements. Group A Unit grants are accounted for as equity-based compensation. See Note 13 in the Company’s annual report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 23, 2021 (“Annual Report”) for additional information. The Company completed a recapitalization in February 2019 (“Recapitalization”). See Note 3 in the Company’s Annual Report for additional details. In connection with the Recapitalization each Group A Unit outstanding on the Recapitalization date was recapitalized into 0.65 Group A Units and 0.35 Group A-1 Units. •Group A-1 Units—Group A-1 Units are limited partner interests into which 0.35 of each Group A Unit was recapitalized in connection with the reallocation that was effectuated by the Recapitalization. The Group A-1 Units will be canceled at such time and to the extent that the Group E Units granted in connection with the Recapitalization vest and achieve a book-up. Group A-1 Units are not eligible to receive distributions at any time and do not participate in the net income (loss) of the Sculptor Operating Group. However, the holders of Group A-1 Units shall participate in any sale, change of control or other liquidity event that takes place prior to cancellation of the Group A-1 Units. In the Recapitalization, the holders of the 2016 Preferred Units, as defined below, forfeited an additional 749,813 Group A Units, which were recapitalized into Group A-1 Units. •Group B Units—Sculptor Corp holds a general partner interest and Group B Units in each Sculptor Operating Partnership. Sculptor Corp owns all of the Group B Units, which represent equity interest in the Sculptor Operating Partnerships. Except during the Distribution Holiday as described above, the Group B Units are economically identical to the Group A Units held by executive managing directors but are not exchangeable for Class A Shares and are not subject to vesting, book-up, forfeiture or minimum retained ownership requirements. •Group E Units—Group E Units are limited partner interests issued to certain executive managing directors that are only entitled to future profits and gains. Each Group E Unit converts into a Group A Unit and becomes exchangeable for one Class A Share (or the cash equivalent thereof) to the extent there has been a sufficient amount of appreciation for a Group E Unit to achieve a book-up target and, subject to other conditions contained in the limited partnership agreements of the Sculptor Operating Partnerships, the Distribution Holiday has ended (or an earlier exchange date is established by the Exchange Committee). The Group E Units are entitled to share in residual assets upon liquidation, dissolution or winding up and become eligible to participate in any tag along right, in a change of control transaction or other liquidity event only to the extent of their relative positive capital accounts (if any). Holders of Group E Units do not receive distributions during the Distribution Holiday. See Note 3 in the Company’s Annual Report for additional details. Group E Unit grants are accounted for as equity-based compensation. See Note 13 in the Company’s Annual Report for additional information. •Group P Units—Group P Units are limited partner interests issued to certain executive managing directors that are only entitled to future profits and gains upon satisfaction of certain service and performance conditions. Each Group P Unit becomes exchangeable for one Class A Share (or the cash equivalent thereof), in each case upon satisfaction of certain service and performance conditions at such time and, with respect to exchanges, to the extent there has been sufficient appreciation for a Group P Unit to achieve a book-up target and, subject to other conditions contained in the limited partnership agreements of the Sculptor Operating Partnerships, the Distribution Holiday has ended (or an earlier exchange date is established by the Exchange Committee). The Group P Units are entitled to share in residual assets upon liquidation, dissolution or winding up and become eligible to participate in any tag along right, in a change of control transaction or other liquidity event only to the extent that certain performance conditions are met and to the extent of their relative positive capital accounts (if any). The terms of the Group P Units may be varied for certain executive managing directors. Group P Unit grants are accounted for as equity-based compensation. See Note 13 in the Company’s Annual Report for additional information. •Preferred Units— The Preferred Units were non-voting preferred equity interests in the Sculptor Operating Partnerships. Preferred Units issued in 2016 and 2017 are collectively referred to as the “2016 Preferred Units.” The 2016 Preferred Units were redeemed in full as a part of the Recapitalization. The Preferred Units issued in 2019 are referred to as the “2019 Preferred Units.” The 2019 Preferred Units were redeemed in full at a 25% discount in the fourth quarter of 2020. Executive managing directors hold a number of Class B Shares equal to the number of Group A Units, vested Group E Units, Group A-1 Units (to the extent the corresponding Class B Shares have not been canceled in connection with the vesting of certain Group E Units issued in connection with the Recapitalization, as further discussed in Note 3 in the Company’s Annual Report) and Group P Units held. Upon the exchange of a Group A Unit or a Group P Unit for a Class A Share, the corresponding Class B Share is canceled and a Group B Unit is issued to Sculptor Corp. Class B Shares that relate to Group A-1 Units will be voted pro rata in accordance with the vote of the Class A Shares. The following table presents the number of shares and units of the Registrant and the Sculptor Operating Partnerships, respectively, that were outstanding as of September 30, 2021:
In addition, the Company grants Class A restricted share units (“RSUs”) and performance-based RSUs (“PSUs”) to its employees and executive managing directors as a form of compensation. RSU and PSU grants are accounted for as equity-based compensation. See Note 13 in the Company’s Annual Report for additional information.
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Basis of Presentation and Summary of Significant Accounting Policies |
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Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited, interim, consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”), and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s unaudited, interim, consolidated financial statements have been included and are of a normal and recurring nature. All significant intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. The results of operations presented for the interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. For example, incentive income for the majority of the Company’s multi-strategy assets under management is recognized in the fourth quarter each year, based on full year investment performance. Recently Adopted Accounting Pronouncements No changes to GAAP that went into effect in the nine months ended September 30, 2021, had a material effect on the Company’s consolidated financial statements. Future Adoption of Accounting Pronouncements No changes to GAAP that are not yet effective are expected to have a material effect on the Company’s consolidated financial statements. See Note 2 of the Annual Report for the complete listing of our accounting policies.
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Noncontrolling Interests |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interests | NONCONTROLLING INTERESTS Noncontrolling interests represent ownership interests in the Company’s subsidiaries held by parties other than the Company, and primarily relate to the Group A Units held by executive managing directors. Prior to the Recapitalization, the attribution of net income (loss) of each Sculptor Operating Partnership was based on the relative ownership percentages of the Group A Units (noncontrolling interests) and the Group B Units (indirectly held by the Registrant). In applying the substantive profit-sharing arrangements in the Sculptor Operating Partnerships’ limited partnership agreements to the Company’s consolidated financial statements, for periods subsequent to the Recapitalization and for the duration of the Distribution Holiday, the Company will allocate net income of each Sculptor Operating Partnership in any fiscal year solely to the Group B Units and any net loss on a pro rata basis based on the relative ownership percentages of the Group A Units and Group B Units. To the extent a Sculptor Operating Partnership incurs a net loss in an interim period, any net income recognized in a subsequent interim period in the same fiscal year is allocated on a pro rata basis to the extent of previously allocated net loss. Conversely, to the extent a Sculptor Operating Partnership recognizes net income in an interim period, any net loss incurred in a subsequent interim period in the same fiscal year is allocated solely to the Group B Units to the extent of previously allocated net income. Noncontrolling interests are presented as a separate component of shareholders’ equity on the Company’s consolidated balance sheets. The primary components of noncontrolling interests are separately presented in the Company’s consolidated statements of changes in shareholders’ equity (deficit) to distinguish the shareholders’ equity (deficit) attributable to Class A shareholders and noncontrolling interest holders. Net income (loss) includes the net income (loss) attributable to the holders of noncontrolling interest on the Company’s consolidated statements of operations. The table below sets forth the calculation of noncontrolling interests related to the Group A Units for each Sculptor Operating Partnership (rounding differences may occur). The blended participation percentages presented below take into account ownership changes throughout the periods presented.
_______________ n/m - not meaningful The following table presents the components of the net (loss) income attributable to noncontrolling interests:
The following table presents the components of the shareholders’ equity attributable to noncontrolling interests:
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Investments and Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments and Fair Value Disclosures | INVESTMENTS AND FAIR VALUE DISCLOSURES The following table presents the components of the Company’s investments as reported in the consolidated balance sheets:
The Company invests in U.S. government obligations to manage excess liquidity and these investments are carried at fair value under the fair value option election with changes in fair value recorded within net gains on investments in the consolidated statements of operations. CLOs, at fair value, consist of investments for which the fair value option has been elected and represents investments in notes of unconsolidated CLOs. Changes in fair value of these investments are included within net gains on investments in the consolidated statements of operations. The Company’s equity investments include investments in funds, which are not consolidated, but in which the Company exerts significant influence. The Company has not elected the fair value option and is accounting for such investments under the equity method. The Company recognizes its share of earnings within net gains on investments in the consolidated statements of operations. Refer to Note 15 for details of the related party nature of such investments. Fair Value Disclosures Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date (i.e., an exit price). The Company and the funds it manages hold a variety of investments, certain of which are not publicly traded or that are otherwise illiquid. Significant judgement and estimation go into the assumptions that drive the fair value of these investments. The fair value of these investments may be estimated using a combination of observed transaction prices, prices from third parties (including independent pricing services and relevant broker quotes), models or other valuation methodologies based on pricing inputs that are neither directly nor indirectly market observable. Due to the inherent uncertainty of valuations of investments that are determined to be illiquid or do not have readily ascertainable fair values, the estimates of fair value may differ from the values ultimately realized, and those differences can be material. GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is impacted by a number of factors, including the type and the specific characteristics of the financial instrument. Financial instruments with readily available, actively quoted prices or for which fair value can be measured from actively-quoted prices generally will have a higher degree of market price observability and lesser degree of judgment used in measuring fair value. Financial instruments measured at fair value are classified and disclosed into one of the following categories based on the observability of inputs used in the determination of fair values: •Level I – Quoted prices that are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments that would generally be included in this category are certain listed equities, U.S. government obligations and certain listed derivatives. •Level II – Quotations received from dealers making a market for financial instruments (“broker quotes”), valuations obtained from independent third-party pricing services, the use of models or other valuation methodologies based on pricing inputs that are either directly or indirectly market observable as of the measurement date. The types of financial instruments that would generally be included in this category are certain corporate bonds, certain credit default swap contracts, certain bank debt securities, certain commercial real estate debt, less liquid equity securities, forward contracts and certain over the-counter (“OTC”) derivatives where the fair value is based on observable inputs. These financial instruments exhibit higher levels of liquid market observability as compared to Level III financial instruments. •Level III – Pricing inputs that are unobservable in the market and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value of financial instrument in this category may require significant management judgment or estimation. The fair value of these financial instruments may be estimated using a combination of observed transaction prices, independent pricing services, relevant broker quotes, models or other valuation methodologies based on pricing inputs that are neither directly or indirectly market observable (e.g., cash flows, implied yields, EBITDA multiples). The types of financial instruments that would generally be included in this category include CLOs, warrant liabilities, certain credit default swap contracts, certain bank debt securities, certain OTC derivatives, asset-backed securities, collateralized debt obligations and investments in affiliated credit funds. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument when the fair value is based on unobservable inputs. For financial instruments for which the Company uses independent pricing services for valuation, the Company performs analytical procedures and compares independent pricing service valuations to other vendors’ pricing as applicable. The Company also performs due diligence reviews on independent pricing services on an annual basis and performs other due diligence procedures as may be deemed necessary. Fair Value Measurements Categorized within the Fair Value Hierarchy The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy as of September 30, 2021:
_______________ (1) As of September 30, 2021, investments in CLOs had contractual principal amounts of $202.8 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy as of December 31, 2020:
_______________ (1) As of December 31, 2020, investments in CLOs had contractual principal amounts of $194.5 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments. Reconciliation of Fair Value Measurements Categorized within Level III Gains and losses, excluding those related to foreign currency translation adjustments, are recorded within net gains on investments in the consolidated statements of operations. Gains and losses related to foreign currency translation adjustments are recorded in the statements of comprehensive income (loss). Amortization of premium, accretion of discount and foreign exchange gains and losses on non-U.S. dollar investments are also included within gains and losses in the tables below. The following table summarizes the changes in the Company’s Level III financial assets and liabilities for the three months ended September 30, 2021:
The following table summarizes the changes in the Company’s Level III financial assets for the three months ended September 30, 2020:
The following table summarizes the changes in the Company’s Level III financial assets and liabilities for the nine months ended September 30, 2021:
The following table summarizes the changes in the Company’s Level III financial assets for the nine months ended September 30, 2020:
The table below summarizes the net change in unrealized gains and (losses) on the Company’s Level III financial instruments outstanding as of the reporting date:
Valuation Methodologies for Fair Value Measurements Categorized within Level III Investments in CLOs are valued using independent pricing services. The Company performs procedures over the values provided by the pricing services as discussed above. Warrant liabilities are valued by independent pricing services using a Black-Scholes option pricing model, for which the Company’s Class A Share price, exercise price, risk free rate, volatility and term to expiry are the primary inputs to the valuation. The Company reviews inputs, assumptions and valuation methodology used in the warrants’ valuations. Financial Instruments Not Measured at Fair Value Management estimates that the carrying value of the Company’s financial instruments not measured at the fair value, including its debt obligations and repurchase agreements, approximated their fair values as of September 30, 2021. The fair value measurements for the Company’s repurchase agreements are categorized as Level III within the fair value hierarchy and were determined using independent pricing services. The fair value measurements for the Company’s debt obligations are categorized as Level III within the fair value hierarchy and for the 2020 Term Loan is determined using a discounted cash flow model and for CLO Investments Loans are determined using independent pricing services. Loans Sold to CLOs Managed by the Company From time to time the Company sells loans to CLOs managed by the Company. These loans are purchased by the Company in the open market and simultaneously sold for cash to the CLOs. The loans are accounted for as transfers of financial assets as they meet the criteria for derecognition under GAAP. No loans were sold in each of the nine months ended September 30, 2021 and 2020. The Company invests in senior secured and subordinated notes issued by certain CLOs to which it sold loans in the past. These investments represent retained interests to the Company and are in the form of a 5% vertical strip (i.e., 5% of each of the senior and subordinated tranches of notes issued by each CLO). The retained interests are reported within investments on the Company’s consolidated balance sheet. As of September 30, 2021 and December 31, 2020, the Company’s investments in these retained interests had a fair value of $89.0 million and $90.3 million, respectively. The Company is subject to risks associated with the performance of the underlying collateral and the market yield of the assets. The Company’s risk of loss from retained interest is limited to its investments in these interests. The Company receives quarterly payments of interest and principal, as applicable, on these retained interests. In the nine months ended September 30, 2021 and 2020, the Company received $2.1 million and $2.3 million, respectively, of interest and principal payments related to the retained interests. The Company uses independent pricing services to value its investments in the CLOs, including the retained interests, and therefore the only key assumption is the price provided by such service. A corresponding adverse change of 10% or 20% on price would have a corresponding impact on the fair value of the Company’s investments in CLOs.
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Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | VARIABLE INTEREST ENTITIES In the ordinary course of business, the Company sponsors the formation of funds that are considered VIEs. See Note 2 in the Company's Annual Report for a discussion of entities that are VIEs and the evaluation of those entities for consolidation by the Company. The assets and liabilities of consolidated VIEs were not material as of September 30, 2021 and December 31, 2020. The Company’s direct involvement with funds that are VIEs and not consolidated by the Company, as it has been determined that the Company is not the primary beneficiary, is generally limited to providing asset management services and, in certain cases, insignificant investments in the VIEs. The maximum exposure to loss represents the potential loss of current investments or income and fees receivables from these entities, as well as the obligation to repay unearned income and fees, primarily incentive income subject to clawback, in the event of any future fund losses. The Company has commitments to certain funds that are VIEs as discussed in Note 16. The Company does not provide, nor is it required to provide, any type of non-contractual financial or other support to its VIEs that are not consolidated. The table below presents the net assets of unconsolidated VIEs in which the Company has variable interests along with the maximum risk of loss as a result of the Company’s involvement with VIEs:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES The Company has non-cancelable operating leases for its headquarters in New York and its offices in London, Hong Kong, Shanghai, and various other locations and data centers. The Company does not have renewal options for any of its current leases. The Company also subleases a portion of its office space in London and New York through the end of the lease term. In addition, the Company has finance leases for computer hardware. As of September 30, 2021, the Company has pledged collateral related to its lease obligations of $6.2 million, which is included within cash and cash equivalents in the consolidated balance sheets. In September 2021, the Company entered into a non-cancellable agreement to sublease a portion of its New York office space through the end of the original lease maturity in 2029. As a result of this agreement, the Company recognized an impairment loss on its right-of-use asset of $11.2 million and wrote-off related leasehold improvements and fixed assets in the amount of $2.3 million. These losses were recorded in the general, administrative and other expenses within the consolidated statements of operations. The Company used a discounted cash flows method to value the right-of-use asset to determine the impairment amount.
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Leases | LEASES The Company has non-cancelable operating leases for its headquarters in New York and its offices in London, Hong Kong, Shanghai, and various other locations and data centers. The Company does not have renewal options for any of its current leases. The Company also subleases a portion of its office space in London and New York through the end of the lease term. In addition, the Company has finance leases for computer hardware. As of September 30, 2021, the Company has pledged collateral related to its lease obligations of $6.2 million, which is included within cash and cash equivalents in the consolidated balance sheets. In September 2021, the Company entered into a non-cancellable agreement to sublease a portion of its New York office space through the end of the original lease maturity in 2029. As a result of this agreement, the Company recognized an impairment loss on its right-of-use asset of $11.2 million and wrote-off related leasehold improvements and fixed assets in the amount of $2.3 million. These losses were recorded in the general, administrative and other expenses within the consolidated statements of operations. The Company used a discounted cash flows method to value the right-of-use asset to determine the impairment amount.
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Debt Obligations and Warrants |
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Debt Obligations | DEBT OBLIGATIONS AND WARRANTS
2020 Credit Agreement On September 25, 2020, Sculptor Capital LP, as borrower, (the “Borrower”), and certain other subsidiaries of the Company, as guarantors, entered into a credit and guaranty agreement (the “2020 Credit Agreement”), consisting of (i) a senior secured term loan facility in an initial aggregate principal amount of $320.0 million (the “2020 Term Loan”) and (ii) a senior secured revolving credit facility in an initial aggregate principal amount of $25.0 million (the “2020 Revolving Credit Facility”). The proceeds from the 2020 Term Loan were first allocated to the full fair value of the warrants issued in connection with the 2020 Credit Agreement (which establishes both a liability and a debt discount, as described below), and the residual proceeds, net of deferred offering costs and discounts, of $275.8 million was then recognized as the initial carrying value of the 2020 Term Loan. Certain prepayments of the 2020 Term Loan are subject to a prepayment premium (the “Call Premium”) equal to (a) prior to the second anniversary of the Closing Date, a customary “make-whole” premium equal to the present value of all required interest payments that would be due from the date of prepayment through and including the second anniversary of the Closing Date plus a premium of 3.0% of the principal amount of loans prepaid, (b) on or after the second anniversary of the Closing Date but prior to the third anniversary of the Closing Date, a premium of 3.0% of the principal amount of loans prepaid, (c) on or after the third anniversary of the Closing Date but prior to the four anniversary of the Closing Date, a premium of 2.0% of the principal amount of loans prepaid and (d) thereafter, 0%. On June 21, 2021, the Company entered into a letter agreement amending the 2020 Credit Agreement to increase the amount of voluntary prepayments for which the Call Premium shall not apply from $175.0 million to $225.0 million in exchange for an amendment fee of $1.75 million. As such, no Call Premium was due on the first $225.0 million prepaid by the Company. The amendment fee was recorded as an additional discount to the 2020 Term Loan in the second quarter of 2021. In the nine months ended September 30, 2021, the Company prepaid $224.4 million of the 2020 Term Loan, resulting in an outstanding balance of $95.0 million, which is due at maturity. The Company recognized a $30.2 million loss on this retirement of debt. As a result of the $175.0 million of aggregate prepayments made through March 31, 2021, the Company is no longer subject to the cash sweep or financial maintenance covenants, other than the covenant requiring $20.0 billion minimum fee-paying assets under management described below. The 2020 Term Loan and the 2020 Revolving Credit Facility mature on the seventh and sixth anniversary, respectively, of the initial funding of the 2020 Term Loan, which occurred on November 13, 2020 (the “Closing Date”). Proceeds from the 2020 Term Loan, together with cash on hand, were used to repay the Debt Securities and the 2018 Term Loan, as defined in Note 8 to our consolidated financial statements in our Annual Report, as well as to redeem the 2019 Preferred Units in full. Borrowings under the 2020 Credit Agreement bear interest at a per annum rate equal to, at the Company’s option, one, two, three or six-month LIBOR (subject to a 0.75% floor) plus 6.25%, or a base rate (subject to a 1.75% floor) plus 5.25%. The Borrower is also required to pay an undrawn commitment fee at a rate per annum equal to 0.50% of the undrawn portion of the 2020 Revolving Credit Facility. The 2020 Credit Agreement prohibits the total fee-paying assets under management, subject to certain exclusions, of the Borrower, the guarantors and their consolidated subsidiaries as of the last day of any fiscal quarter to be less than $20.0 billion. The 2020 Credit Agreement contains customary events of default for a transaction of this type, after which obligations under the 2020 Credit Agreement may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Borrower, the guarantors or any of the material subsidiaries of the foregoing after which the obligations under the 2020 Credit Agreement become automatically due and payable. The 2020 Credit Agreement also provided the counterparty a seat on the Company’s Board of Directors. Warrants In connection with the 2020 Credit Agreement, the Company has issued and outstanding warrants to purchase 4,338,015 Class A Shares. The warrants have a 10-year term from the Closing Date and an initial exercise price per share equal to $11.93. The exercise price is subject to reduction by an amount equal to any dividends paid on Class A Shares. As a result, the exercise price was $8.74 per share as of September 30, 2021. The warrants provide for customary adjustments in the event of a stock split, stock dividend, recapitalization or similar event. In lieu of making a cash payment otherwise contemplated upon exercise, the holder may exercise the warrants in whole or in part to receive a net number of Class A Shares. In addition, one of the warrants provides that, upon exercise in whole or in part by the holder, the Company may decide in its sole discretion whether the holder’s exercise of such warrant will be settled by delivery of Class A Shares (which shares may be reduced to a net number of Class A Shares in accordance with the procedure described in the preceding sentence) or by the Company’s payment to the holder of an amount in cash equal to the Black-Scholes value as provided for in the applicable warrant agreement. If the Company undergoes a change of control prior to the expiration date, the holder will have the right to require the Company to repurchase any remaining portion of the warrants not yet exercised at their Black-Scholes value as provided for in the applicable agreement. The warrants restrict transfers and other dispositions for 18 months from the Closing Date, subject to certain exceptions. CLO Investments Loans The Company entered into loans to finance portions of investments in certain CLOs (collectively, the “CLO Investments Loans”). In general, the Company will make interest payments on the loans at such time interest payments are received on its investments in the CLOs, and will make principal payments on the loans to the extent principal payments are received on its investments in the CLOs, with any remaining balance due upon maturity. The loans are subject to customary events of default and covenants and also include terms that require the Company’s continued involvement with the CLOs. In addition to customary events of default included in financing arrangements of this type, an event of default would also be triggered if there is an event of default at the CLO level. Prior to the relevant CLO’s maturity date, this would include certain material covenant breaches, regulatory and insolvency events for the relevant CLO issuer, as well as a payment default, where the relevant CLO is unable to make interest payments on the senior, non-deferrable interest notes issued by the CLO. The CLO Investments Loans do not have any financial maintenance covenants and are secured by the related investments in CLOs, which investments had fair values of $43.3 million and $66.5 million as of September 30, 2021 and December 31, 2020, respectively. Carrying amounts presented in the table below are net of discounts, if any, and unamortized deferred financing costs. The interest rates on the CLO Investments Loans are variable based on LIBOR or EURIBOR (subject to a floor of zero percent). The maturity date for each CLO Investments Loan is the earlier of the final maturity date presented in the table below or the date at which the Company no longer holds a risk retention investment in the respective CLO.
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Securities Sold under Agreements to Repurchase |
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Transfers and Servicing of Financial Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE The Company has a €200.0 million master credit facility agreement (the “CLO Financing Facility”) to finance portions of the risk retention investments in certain CLOs managed by the Company. Subject to the terms and conditions of the CLO Financing Facility, the Company and the counterparty may enter into repurchase agreements on such terms agreed upon by the parties. Each transaction entered into under the CLO Financing Facility will bear interest at a rate based on the weighted average effective interest rate of each class of securities that have been sold plus a spread to be agreed upon by the parties. As of September 30, 2021, €61.4 million of the CLO Financing Facility remained available. Each transaction entered into under the CLO Financing Facility provides for payment netting and, in the case of a default or similar event with respect to the counterparty to the CLO Financing Facility, provides for netting across transactions. Generally, upon a counterparty default, the Company can terminate all transactions under the CLO Financing Facility and offset amounts it owes in respect of any one transaction against collateral it has received in respect of any other transactions under the CLO Financing Facility; provided, however, that in the case of certain defaults, the Company may only be able to terminate and offset solely with respect to the transaction affected by the default. During the term of a transaction entered into under the CLO Financing Facility, the Company will deliver cash or additional securities acceptable to the counterparty if the securities sold are in default. In addition to customary events of default included in financing arrangements of this type, an event of default would also be triggered if there is an event of default at the CLO level. Prior to the relevant CLO’s maturity date, this would include certain material covenant breaches, regulatory and insolvency events for the relevant CLO issuer, as well as a payment default where the relevant CLO is unable to make interest payments on the senior, non-deferrable interest notes issued by the CLO. Upon termination of a transaction, the Company will repurchase the previously sold securities from the counterparty at a previously determined repurchase price. The CLO Financing Facility may be terminated at any time upon certain defaults or circumstances agreed upon by the parties. The repurchase agreements may result in credit exposure in the event the counterparty to the transaction is unable to fulfill its contractual obligations. The Company minimizes the credit risk associated with these activities by monitoring counterparty credit exposure and collateral values. Other than margin requirements, the Company is not subject to additional terms or contingencies which would expose the Company to additional obligations based upon the performance of the securities pledged as collateral. The table below presents securities sold under agreements to repurchase that are offset, if any, as well as securities transferred to counterparties related to such transactions (capped so that the net amount presented will not be reduced below zero). No other material financial instruments were subject to master netting agreements or other similar agreements:
The securities sold under agreements to repurchase have a set scheduled maturity date that corresponds to the maturities of the securities sold under such transaction. The table below presents the remaining final contractual maturity of the securities sold under agreement to repurchase by class of collateral pledged:
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Other Assets, Net |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Net | OTHER ASSETS, NETThe following table presents the components of other assets, net as reported in the consolidated balance sheets:
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Other Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | OTHER LIABILITIES The following table presents the components of other liabilities as reported in the unaudited consolidated balance sheets:
_______________ (1) To the extent that a fee-paying fund is an investor in another fee-paying fund, the Company rebates a corresponding portion of the management fees charged in the investee fund. Due to funds amounts also reflect certain incentive income and management fee waivers.
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Revenues |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | REVENUES The following table presents management fees and incentive income recognized as revenues for the three months ended September 30, 2021 and 2020:
The following table presents management fees and incentive income recognized as revenues for the nine months ended September 30, 2021 and 2020:
The following table presents the composition of the Company’s income and fees receivable as of September 30, 2021 and December 31, 2020:
The Company recognizes management fees over the period in which the performance obligation is satisfied. The Company records incentive income when it is probable that a significant reversal of income will not occur. The majority of management fees and incentive income receivable at each balance sheet date is generally collected during the following quarter. The following table presents the Company’s unearned income and fees as of September 30, 2021 and December 31, 2020:
A liability for unearned incentive income is generally recognized when the Company receives incentive income distributions from its funds, primarily its real estate funds, whereby the distributions received have not yet met the recognition threshold of being probable that a significant reversal of cumulative revenue will not occur. A liability for unearned management fees is generally recognized when management fees are paid to the Company on a quarterly basis in advance, based on the amount of assets under management at the beginning of the quarter. In the nine months ended September 30, 2021, and 2020, the Company recognized $9.8 million and $3.9 million, respectively, of the beginning balance of unearned incentive income for each respective year. The Company recognized all of the beginning balances of unearned management fees during the respective quarter.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXESThe computation of the effective tax rate and provision at each interim period requires the use of certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent differences, and the likelihood of recovering deferred tax assets existing as of the balance sheet date. The estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as tax laws and regulations change. Accordingly, the effective tax rate for interim periods is not indicative of the tax rate expected for a full year. The following is a reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate:
The Company recognizes tax benefits for amounts that are “more likely than not” to be sustained upon examination by tax authorities. For uncertain tax positions in which the benefit to be realized does not meet the “more likely than not” threshold, the Company establishes a liability, which is included within other liabilities in the consolidated balance sheets. As of September 30, 2021 and December 31, 2020, the Company had a liability for unrecognized tax benefits of $8.3 million. As of and for the nine months ended September 30, 2021, the Company did not accrue interest or penalties related to uncertain tax positions. As of September 30, 2021, the Company does not believe that there will be a significant change to the uncertain tax positions during the next 12 months. The Company’s total unrecognized tax benefits if recognized, would affect its tax expense by $4.8 million as of September 30, 2021.
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General, Administrative and Other |
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General, Administrative and Other | GENERAL, ADMINISTRATIVE AND OTHER The following table presents the components of general, administrative and other expenses as reported in the consolidated statements of operations:
_______________ (1)See Note 6 for additional details on impairment of right-of-use asset.
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Earnings (Loss) Per Class A Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Class A Share | (LOSS) EARNINGS PER CLASS A SHARE Basic (loss) earnings per Class A Share is computed by dividing the net (loss) income attributable to Class A Shareholders by the weighted-average number of Class A Shares outstanding for the period. For the three months ended September 30, 2021 and 2020, the Company included 130,528 and 297,927 RSUs respectively, that have vested but have not been settled in Class A Shares in the weighted-average Class A Shares outstanding used to calculate basic and diluted (loss) earnings per Class A Share. For the nine months ended September 30, 2021 and 2020, the Company included 176,516 and 473,070 RSUs respectively, that have vested but have not been settled in Class A Shares in the weighted-average Class A Shares outstanding used to calculate basic and diluted (loss) earnings per Class A Share. When calculating dilutive (loss) earnings per Class A Share, the Company applies the treasury stock method to outstanding warrants and unvested RSUs. At the Sculptor Operating Group Level, the Company applies the if-converted method to vested Group A Units and vested Group E Units. For unvested Group A Units and unvested Group E Units, the Company applies the treasury stock method first to determine the number of incremental units that would be issuable and then applies the if-converted method to those resulting incremental units. The Company did not include the Group P Units or unvested PSUs in the calculation of dilutive (loss) earnings per Class A Share, as the applicable market performance conditions had not yet been met as of the end of each reporting period presented below. Certain PSUs vested in the second quarter of 2021 at which time they were converted into Class A Shares. The effect of dilutive securities on net (loss) income attributable to Class A Shareholders is presented net of tax. The following tables present the computation of basic and diluted (loss) earnings per Class A Share:
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Related Party Transactions |
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Related Party Transactions | RELATED PARTY TRANSACTIONS Due from Related Parties Amounts due from related parties relate primarily to amounts due from the funds for expenses paid on their behalf. These amounts are reimbursed to the Company on an ongoing basis. Certain Amounts Related to Tax Receivable Agreement Liability Amounts due to related parties relate primarily to future payments owed to certain former executive managing directors under the tax receivable agreement, as discussed further in Note 16. The tax receivable agreement liability was $183.1 million as of September 30, 2021, and $88.3 million of the balance was due to related parties. The Company made payments totaling $7.2 million, and $18.2 million under the tax receivable agreement (inclusive of interest thereon) in the nine months ended September 30, 2021 and 2020, respectively, of which $3.9 million and $10.0 million were paid to related parties. No payments were made in the three months ended September 30, 2021 and 2020, respectively. Management Fees and Incentive Income Earned from Related Parties and Waived Fees The Company earns substantially all of its management fees and incentive income from the funds, which are considered related parties as the Company manages the operations of and makes investment decisions for these funds. As of September 30, 2021 and 2020, respectively, approximately $938.9 million and $957.1 million of the Company’s assets under management represented investments by the Company, its executive managing directors, employees and certain other related parties in the Company’s funds. As of September 30, 2021 and 2020, approximately 54% and 48%, respectively, of these assets under management were not charged management fees or incentive income. The following table presents management fees and incentive income charged on investments held by the Company’s executive managing directors, employees and certain other related parties:
Commitment to Purchase Interest in BharCap Sponsor LLC. In March 2021, the Company committed to acquire a non-controlling membership interest of BharCap Sponsor LLC, an entity managed by a member of the Company’s board of directors, in the amount of $3.0 million and as of September 30, 2021, has funded $210 thousand of the commitment. In connection with the anticipated initial public offering of BharCap Acquisition Corp., a newly organized blank check company, BharCap Sponsor LLC purchased shares of BharCap Acquisition Corp.’s Class B common stock and has committed to purchase warrants in a private placement that will close simultaneously with the closing of the initial public offering of BharCap Acquisition Corp.
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Commitments and Contingencies |
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Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Tax Receivable Agreement The purchase of Group A Units from current and former executive managing directors and the Ziffs with the proceeds from the 2007 Offerings, and subsequent taxable exchanges by them of Partner Equity Units for Class A Shares on a one-for-one basis (or, at the Company’s option, a cash equivalent), resulted, and, in the case of future exchanges, are anticipated to result, in an increase in the tax basis of the assets of the Sculptor Operating Group that would not otherwise have been available. The Company anticipates that any such tax basis adjustment resulting from an exchange will be allocated principally to certain intangible assets of the Sculptor Operating Group, and the Company will derive its tax benefits principally through amortization of these intangibles over a 15-year period. Consequently, these tax basis adjustments will increase, for tax purposes, the Company’s depreciation and amortization expenses and will therefore reduce the amount of tax that Sculptor Corp and any other future corporate taxpaying entities that acquire Group B Units in connection with an exchange, if any, would otherwise be required to pay in the future. Accordingly, pursuant to the tax receivable agreement, such corporate taxpaying entities (including Sculptor Capital Management, Inc. once it became treated as a corporate taxpayer following the Company’s conversion from a partnership to a corporation for U.S. federal income tax purposes, effective April 1, 2019 (the “Corporate Classification Change”), have agreed to pay the executive managing directors and the Ziffs a percentage of the amount of cash savings, if any, in federal, state and local income taxes in the U.S. that these entities actually realize related to their units as a result of such increases in tax basis. For tax years prior to 2019, such percentage was 85% of such annual cash savings under the tax receivable agreement. In connection with the Recapitalization, the Company amended the tax receivable agreement to provide that, conditioned on Sculptor Capital Management, Inc. electing to be classified as, or converting into, a corporation for U.S. tax purposes, (i) no amounts are due or payable with respect to the 2017 tax year, (ii) only partial payments equal to 85% of the excess of such cash savings that would otherwise be due over 85% of such cash savings determined assuming that taxable income equals Economic Income are due and payable in respect of the 2018 tax year and (iii) the percentage of cash savings required to be paid with respect to the 2019 tax year and thereafter, as well as with respect to cash savings from subsequent exchanges, is reduced to 75%. In connection with the departure of certain former executive managing directors since the 2007 Offerings, the right to receive payments under the tax receivable agreement by those former executive managing directors was contributed to the Sculptor Operating Group. As a result, the Company expects to pay to the other executive managing directors and the Ziffs approximately 69% of the amount of cash savings, if any, in federal, state and local income taxes in the U.S. that the Company realizes as a result of such increases in tax basis with respect to future tax years. To the extent that the Company does not realize any cash savings, it would not be required to make corresponding payments under the tax receivable agreement. The Company recorded its initial estimate of future payments under the tax receivable agreement as a decrease to additional paid-in capital and an increase in the tax receivable agreement liability in the consolidated financial statements. Subsequent adjustments to the liability for future payments under the tax receivable agreement related to changes in estimated future tax rates or state income tax apportionment are recognized through current period earnings in the consolidated statements of operations. The estimate of the timing and the amount of future payments under the tax receivable agreement involves several assumptions that do not account for the significant uncertainties associated with these potential payments, including an assumption that Sculptor Corp will have sufficient taxable income in the relevant tax years to utilize the tax benefits that would give rise to an obligation to make payments. The actual timing and amount of any actual payments under the tax receivable agreement will vary based upon these and a number of other factors. As of September 30, 2021, the estimated future payment under the tax receivable agreement was $183.1 million, which is recorded in the tax receivable agreement liability balance on the consolidated balance sheets. The table below presents management’s estimate as of September 30, 2021, of the maximum amounts that would be payable under the tax receivable agreement assuming that the Company will have sufficient taxable income each year to fully realize the expected tax savings. In light of the numerous factors affecting the Company’s obligation to make such payments, the timing and amounts of any such actual payments may differ materially from those presented in the table. The impact of any net operating losses is included in the “Thereafter” amount in the table below.
Litigation From time to time, the Company is involved in litigation and claims incidental to the conduct of the Company’s business. The Company is also subject to extensive scrutiny by regulatory agencies globally that have, or may in the future have, regulatory authority over the Company and its business activities. This has resulted, or may in the future result, in regulatory agency investigations, litigation and subpoenas and costs related to each. In U.S. v. Oz Africa Management GP, LLC, Cr. No. 16-515 (NGG) (EDNY), on November 4, 2020, the U.S. District Court for the Eastern District of New York (the “Court”) ordered restitution consistent with the terms of the settlement agreement between Oz Africa Management GP, LLC (“Oz Africa”) and certain former shareholders of Africo Resources Ltd. (the “Claimants”), and imposed a sentence otherwise consistent with the Plea Agreement, dated September 29, 2016, between Oz Africa and the Department of Justice (the “DOJ”) and U.S. Attorney’s Office for the Eastern District of New York (the “USAO”). Per the Court’s sentence and the settlement agreement, Oz Africa paid approximately $138.0 million to former shareholders of Africo Resources Ltd. Additionally, the Deferred Prosecution Agreement (the “DPA”) between the Company, the DOJ and the USAO was terminated shortly thereafter. With completion of the foregoing events, the Company has put all legal issues stemming from legacy dealings in Africa behind it. Investment Commitments The Company has unfunded capital commitments of $70.7 million to certain funds it manages. Approximately $48.6 million of these commitments will be funded by contributions to the Company from certain employees and executive managing directors. The Company expects to fund these commitments over the approximately next seven years. In addition, certain current and former executive managing directors of the Company, collectively, have unfunded capital commitments to funds managed by the Company of up to $32.2 million. The Company has guaranteed these commitments in the event any executive managing director fails to fund any portion when called by the fund. The Company has historically not funded any of these commitments and does not expect to in the future, as these commitments are expected to be funded by the Company’s executive managing directors individually. In addition, in March 2021, the Company committed to acquire a non-controlling membership interest of BharCap Sponsor LLC., see Note 15 for additional details. Other Contingencies In the normal course of business, the Company enters into contracts that provide a variety of general indemnifications. Such contracts include those with certain service providers, brokers and trading counterparties. Any exposure to the Company under these arrangements could involve future claims that may be made against the Company. Currently, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications. Additionally, the Company has agreements with certain of the funds it manages to reimburse certain expenses in excess of an agreed-upon cap. During the three and nine months ended September 30, 2021 and 2020 these amounts were not material.
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Subsequent Events |
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Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Dividend On November 3, 2021, the Company announced a cash dividend of $0.28 per Class A Share. The dividend is payable on November 22, 2021, to holders of record as of the close of business on November 15, 2021. Exchange of Group A Units for Class A Shares and Cash On November 3, 2021 the Sculptor Operating Partnerships and Sculptor Corp exchanged 993,512 Group A Units held by certain former executive managing directors for a combination of $11.1 million cash and 317,926 Class A shares, equating to an execution price of $19.68 per Group A Unit. In addition, 534,969 Group A-1 Units held by such former executive managing directors were cancelled. The agreement to exchange such Group A Units was entered into on November 1, 2021 and was completed on November 3, 2021. The Class A Shares were issued in a transaction exempt from the registration requirement of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) thereof and Regulation D thereunder to accredited investors (as such term is defined in Regulation D).
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Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited, interim, consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”), and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s unaudited, interim, consolidated financial statements have been included and are of a normal and recurring nature. All significant intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. The results of operations presented for the interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. For example, incentive income for the majority of the Company’s multi-strategy assets under management is recognized in the fourth quarter each year, based on full year investment performance.
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Recently Adopted and Future Adoption of Accounting Pronouncements | Recently Adopted Accounting Pronouncements No changes to GAAP that went into effect in the nine months ended September 30, 2021, had a material effect on the Company’s consolidated financial statements. Future Adoption of Accounting Pronouncements No changes to GAAP that are not yet effective are expected to have a material effect on the Company’s consolidated financial statements.
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Investments | The Company invests in U.S. government obligations to manage excess liquidity and these investments are carried at fair value under the fair value option election with changes in fair value recorded within net gains on investments in the consolidated statements of operations. CLOs, at fair value, consist of investments for which the fair value option has been elected and represents investments in notes of unconsolidated CLOs. Changes in fair value of these investments are included within net gains on investments in the consolidated statements of operations. The Company’s equity investments include investments in funds, which are not consolidated, but in which the Company exerts significant influence. The Company has not elected the fair value option and is accounting for such investments under the equity method. The Company recognizes its share of earnings within net gains on investments in the consolidated statements of operations. Refer to Note 15 for details of the related party nature of such investments.
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Fair Value Measurement, Policy | Fair Value Disclosures Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date (i.e., an exit price). The Company and the funds it manages hold a variety of investments, certain of which are not publicly traded or that are otherwise illiquid. Significant judgement and estimation go into the assumptions that drive the fair value of these investments. The fair value of these investments may be estimated using a combination of observed transaction prices, prices from third parties (including independent pricing services and relevant broker quotes), models or other valuation methodologies based on pricing inputs that are neither directly nor indirectly market observable. Due to the inherent uncertainty of valuations of investments that are determined to be illiquid or do not have readily ascertainable fair values, the estimates of fair value may differ from the values ultimately realized, and those differences can be material. GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. Market price observability is impacted by a number of factors, including the type and the specific characteristics of the financial instrument. Financial instruments with readily available, actively quoted prices or for which fair value can be measured from actively-quoted prices generally will have a higher degree of market price observability and lesser degree of judgment used in measuring fair value. Financial instruments measured at fair value are classified and disclosed into one of the following categories based on the observability of inputs used in the determination of fair values: •Level I – Quoted prices that are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments that would generally be included in this category are certain listed equities, U.S. government obligations and certain listed derivatives. •Level II – Quotations received from dealers making a market for financial instruments (“broker quotes”), valuations obtained from independent third-party pricing services, the use of models or other valuation methodologies based on pricing inputs that are either directly or indirectly market observable as of the measurement date. The types of financial instruments that would generally be included in this category are certain corporate bonds, certain credit default swap contracts, certain bank debt securities, certain commercial real estate debt, less liquid equity securities, forward contracts and certain over the-counter (“OTC”) derivatives where the fair value is based on observable inputs. These financial instruments exhibit higher levels of liquid market observability as compared to Level III financial instruments. •Level III – Pricing inputs that are unobservable in the market and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value of financial instrument in this category may require significant management judgment or estimation. The fair value of these financial instruments may be estimated using a combination of observed transaction prices, independent pricing services, relevant broker quotes, models or other valuation methodologies based on pricing inputs that are neither directly or indirectly market observable (e.g., cash flows, implied yields, EBITDA multiples). The types of financial instruments that would generally be included in this category include CLOs, warrant liabilities, certain credit default swap contracts, certain bank debt securities, certain OTC derivatives, asset-backed securities, collateralized debt obligations and investments in affiliated credit funds. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument when the fair value is based on unobservable inputs.
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Organization (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Shares and Operating Group Units | The following table presents the number of shares and units of the Registrant and the Sculptor Operating Partnerships, respectively, that were outstanding as of September 30, 2021:
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Noncontrolling Interests (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Noncontrolling Interests Attributable to Group A Units | The table below sets forth the calculation of noncontrolling interests related to the Group A Units for each Sculptor Operating Partnership (rounding differences may occur). The blended participation percentages presented below take into account ownership changes throughout the periods presented.
_______________ n/m - not meaningful
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Components of Net Loss Attributable to Noncontrolling Interests | The following table presents the components of the net (loss) income attributable to noncontrolling interests:
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Components of Shareholders' Equity Attributable to Noncontrolling Interests | The following table presents the components of the shareholders’ equity attributable to noncontrolling interests:
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Investments and Fair Value Disclosures (Tables) |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Summary | The following table presents the components of the Company’s investments as reported in the consolidated balance sheets:
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy as of September 30, 2021:
_______________ (1) As of September 30, 2021, investments in CLOs had contractual principal amounts of $202.8 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy as of December 31, 2020:
_______________ (1) As of December 31, 2020, investments in CLOs had contractual principal amounts of $194.5 million outstanding, which excludes the Company’s investments in subordinated tranches of the notes, as these do not have contractual principal payments.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in the Company’s Level III financial assets and liabilities for the three months ended September 30, 2021:
The following table summarizes the changes in the Company’s Level III financial assets for the three months ended September 30, 2020:
The following table summarizes the changes in the Company’s Level III financial assets and liabilities for the nine months ended September 30, 2021:
The following table summarizes the changes in the Company’s Level III financial assets for the nine months ended September 30, 2020:
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Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | The table below summarizes the net change in unrealized gains and (losses) on the Company’s Level III financial instruments outstanding as of the reporting date:
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Variable Interest Entities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | The table below presents the net assets of unconsolidated VIEs in which the Company has variable interests along with the maximum risk of loss as a result of the Company’s involvement with VIEs:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Cost |
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Maturity of Lease Liabilities |
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Sublease Rent Payments Receivable |
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Debt Obligations and Warrants (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt |
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CLO Investments Loans Table | Carrying amounts presented in the table below are net of discounts, if any, and unamortized deferred financing costs. The interest rates on the CLO Investments Loans are variable based on LIBOR or EURIBOR (subject to a floor of zero percent). The maturity date for each CLO Investments Loan is the earlier of the final maturity date presented in the table below or the date at which the Company no longer holds a risk retention investment in the respective CLO.
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Securities Sold under Agreements to Repurchase (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing of Financial Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repurchase Agreements Offsetting Disclosures | The table below presents securities sold under agreements to repurchase that are offset, if any, as well as securities transferred to counterparties related to such transactions (capped so that the net amount presented will not be reduced below zero). No other material financial instruments were subject to master netting agreements or other similar agreements:
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Schedule of Remaining Contractual Maturity of Repurchase Agreements | The securities sold under agreements to repurchase have a set scheduled maturity date that corresponds to the maturities of the securities sold under such transaction. The table below presents the remaining final contractual maturity of the securities sold under agreement to repurchase by class of collateral pledged:
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Other Assets, Net (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Assets | The following table presents the components of other assets, net as reported in the consolidated balance sheets:
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Other Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Liabilities | The following table presents the components of other liabilities as reported in the unaudited consolidated balance sheets:
_______________ (1) To the extent that a fee-paying fund is an investor in another fee-paying fund, the Company rebates a corresponding portion of the management fees charged in the investee fund. Due to funds amounts also reflect certain incentive income and management fee waivers.
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Revenues (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management Fees and Incentive Income Recognized | The following table presents management fees and incentive income recognized as revenues for the three months ended September 30, 2021 and 2020:
The following table presents management fees and incentive income recognized as revenues for the nine months ended September 30, 2021 and 2020:
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Income and Fees Receivable | The following table presents the composition of the Company’s income and fees receivable as of September 30, 2021 and December 31, 2020:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unearned Income and Fees | The following table presents the Company’s unearned income and fees as of September 30, 2021 and December 31, 2020:
|
Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate:
|
General, Administrative and Other (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of General, Administrative and Other Expenses | The following table presents the components of general, administrative and other expenses as reported in the consolidated statements of operations:
_______________ (1)See Note 6 for additional details on impairment of right-of-use asset.
|
Earnings (Loss) Per Class A Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings (Loss) Per Class A Share | The following tables present the computation of basic and diluted (loss) earnings per Class A Share:
|
Related Party Transactions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management Fees and Incentive Income Earned from Related Parties | The following table presents management fees and incentive income charged on investments held by the Company’s executive managing directors, employees and certain other related parties:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Future Maximum Payments Under Tax Receivable Agreement | The table below presents management’s estimate as of September 30, 2021, of the maximum amounts that would be payable under the tax receivable agreement assuming that the Company will have sufficient taxable income each year to fully realize the expected tax savings. In light of the numerous factors affecting the Company’s obligation to make such payments, the timing and amounts of any such actual payments may differ materially from those presented in the table. The impact of any net operating losses is included in the “Thereafter” amount in the table below.
|
Organization - Additional Information (Detail) |
3 Months Ended | |
---|---|---|
Feb. 07, 2019
shares
|
Dec. 31, 2020 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Ratio of Group A Units Recapitalized as Group A Units | 0.65 | |
Ratio of Group A Units Recapitalized as Group A-1 Units | 0.35 | |
Number of Group A Units forfeited in connection with Recapitalization | 749,813 | |
Discount on early redemption of 2019 Preferred Units | 25.00% |
Organization - Schedule of Shares and Operating Group Units (Detail) - shares |
Sep. 30, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|---|---|
Class of Stock | ||||||
Warrants outstanding | 4,338,015 | |||||
Class A Shares | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 25,216,856 | 25,101,187 | 22,903,571 | 22,557,205 | 22,311,432 | 21,284,945 |
Class B Shares | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 32,887,882 | 32,887,882 | 32,824,538 | 32,820,413 | 32,820,414 | 29,208,952 |
Group A Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 16,019,506 | |||||
Group A-1 Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 9,779,446 | |||||
Group B Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 25,216,856 | |||||
Group E Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 13,009,152 | |||||
Group P Units | ||||||
Class of Stock | ||||||
Common stock and operating group units outstanding | 3,385,000 |
Noncontrolling Interests - Components of Net Loss Attributable to Noncontrolling Interests (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) Attributable to Noncontrolling Interests | $ (2,386) | $ 4,393 | $ (20,777) | $ (63,552) |
Group A Units | ||||
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) Attributable to Noncontrolling Interests | (2,553) | 4,494 | (22,416) | (62,973) |
Other | ||||
Noncontrolling Interest [Line Items] | ||||
Net Income (Loss) Attributable to Noncontrolling Interests | $ 167 | $ (101) | $ 1,639 | $ (579) |
Noncontrolling Interests - Components of Shareholders' Equity Attributable to Noncontrolling Interests (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Noncontrolling Interest [Line Items] | ||
Shareholders’ equity attributable to noncontrolling interests | $ 436,876 | $ 445,348 |
Group A Units | ||
Noncontrolling Interest [Line Items] | ||
Shareholders’ equity attributable to noncontrolling interests | 425,401 | 433,756 |
Other | ||
Noncontrolling Interest [Line Items] | ||
Shareholders’ equity attributable to noncontrolling interests | $ 11,475 | $ 11,592 |
Investments and Fair Value Disclosures - Schedule of Investments (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
U.S. government obligations, at fair value | $ 241,570 | $ 104,295 |
CLOs, at fair value | 216,536 | 205,510 |
Equity method investments | 161,235 | 105,169 |
Total Investments | $ 619,341 | $ 414,974 |
Investments and Fair Value Disclosures - Schedule of Changes in Company's Level III Investments (Detail) - Management company related - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Warrants | ||||
Liabilities, at Fair Value | ||||
Beginning balance, Liability | $ 76,002 | $ 37,827 | ||
Purchases / Issuances | 0 | 0 | ||
Investment Sales / Settlements | 0 | 0 | ||
Gains / (Losses) Included in Earnings | (12,710) | (50,885) | ||
Gains / (Losses) Included in Other Comprehensive Income | 0 | 0 | ||
Ending balance, Liability | 88,712 | 88,712 | ||
CLOs | ||||
Assets, at Fair Value | ||||
Beginning balance, Asset | 219,433 | $ 178,842 | 205,510 | $ 182,870 |
Purchases / Issuances | 982 | 778 | 34,276 | 5,185 |
Investment Sales / Settlements | (286) | (103) | (16,431) | (288) |
Gains / (Losses) Included in Earnings | 335 | 9,123 | 2,088 | 873 |
Gains / (Losses) Included in Other Comprehensive Income | (3,928) | 0 | (8,907) | 0 |
Ending balance, Asset | $ 216,536 | $ 188,640 | $ 216,536 | $ 188,640 |
Investments and Fair Value Disclosures - Schedule of Net Unrealized Gains (Losses) on Company's Level III Assets and Liabilities (Detail) - Management company related - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Warrants | ||||
Liabilities, at Fair Value | ||||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | $ (12,710) | $ 0 | $ (50,885) | $ 0 |
CLOs | ||||
Assets, at Fair Value | ||||
CLOs | $ (3,593) | $ 3,185 | $ (6,063) | $ 873 |
Investments and Fair Value Disclosures - Additional Information (Detail) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Fair Value Disclosures [Abstract] | |||
Loans sold to CLOs | $ 0 | $ 0 | |
Risk retention percentage | 5.00% | ||
Fair value of investments in retained interests | $ 89,000,000 | $ 90,300,000 | |
Cash flows from retained interests | $ 2,100,000 | $ 2,300,000 |
Variable Interest Entities - Assets and Liabilities Related to VIEs that are Not Consolidated (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Maximum risk of loss as a result of the Company’s involvement with VIEs: | ||
Income and fees receivable | $ 45,876 | $ 539,623 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Net assets of unconsolidated VIEs in which the Company has a variable interest | 10,929,724 | 10,481,312 |
Maximum risk of loss as a result of the Company’s involvement with VIEs: | ||
Unearned income and fees | 70,042 | 61,880 |
Income and fees receivable | 12,285 | 192,826 |
Investments | 241,446 | 233,638 |
Maximum Exposure to Loss | $ 323,773 | $ 488,344 |
Leases - Lease Cost (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Leases [Abstract] | ||||
Lease collateral | $ 6,200 | $ 6,200 | ||
Impairment of right-of-use asset | 11,240 | $ 0 | 11,240 | $ 0 |
Tangible asset impairment charges | 2,300 | |||
Operating lease cost | 4,882 | 5,152 | 15,215 | 15,440 |
Short-term lease cost | 4 | 13 | 26 | 38 |
Finance lease cost - amortization of leased assets | 199 | 199 | 596 | 529 |
Finance lease cost - imputed interest on lease liabilities | 4 | 19 | 21 | 57 |
Less: Sublease income | (408) | (391) | (1,234) | (1,145) |
Net Lease Cost | $ 4,681 | $ 4,992 | $ 14,624 | $ 14,919 |
Leases - Supplemental Lease Cash Flow Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Leases [Abstract] | ||||
Operating cash flows for operating leases | $ 5,398 | $ 5,634 | $ 16,563 | $ 16,837 |
Operating cash flows for finance leases | 0 | 1 | 1 | 6 |
Finance cash flows for finance leases | 241 | 256 | 865 | 907 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 0 | 0 | 2,893 | 6 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 0 | $ 0 | $ 0 | $ 745 |
Leases - Lease Term and Discount Rate (Detail) |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 9 months 18 days | 8 years 6 months |
Finance Lease, Weighted Average Remaining Lease Term | 1 year 6 months | 1 year 7 months 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 7.80% | 7.90% |
Finance Lease, Weighted Average Discount Rate, Percent | 6.30% | 7.20% |
Leases - Maturity of Lease Liabilities (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Operating Leases | ||
October 1, 2021 to December 31, 2021 | $ 5,383 | |
2022 | 20,773 | |
2023 | 20,017 | |
2024 | 16,132 | |
2025 | 14,329 | |
Thereafter | 68,042 | |
Total Lease Payments | 144,676 | |
Imputed interest | (36,640) | |
Operating lease liabilities | 108,036 | $ 115,237 |
Finance Leases | ||
October 1, 2021 to December 31, 2021 | 0 | |
2022 | 248 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total Lease Payments | 248 | |
Imputed interest | (8) | |
Finance lease liabilities | $ 240 |
Leases Sublease Rent Payments Receivable (Detail) $ in Thousands |
Sep. 30, 2021
USD ($)
|
---|---|
Operating Leases | |
October 1, 2021 to December 31, 2021 | $ 402 |
2022 | 2,086 |
2023 | 3,177 |
2024 | 1,920 |
2025 | 1,920 |
Thereafter | 8,040 |
Total Sublease Rent - Contractual Payments | $ 17,545 |
Debt Obligations and Warrants - Schedule of Debt Principal Payments (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Maturity of Debt Obligations | ||
October 1, 2021 to December 31, 2021 | $ 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 134,035 | |
Total Payments | 134,035 | |
Unamortized discounts & deferred financing costs | (13,868) | |
Debt obligations | 120,167 | $ 334,972 |
2020 Term Loan | ||
Maturity of Debt Obligations | ||
October 1, 2021 to December 31, 2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 95,000 | |
Total Payments | 95,000 | |
Unamortized discounts & deferred financing costs | (13,637) | |
Debt obligations | 81,363 | 275,800 |
CLO Investments Loans | ||
Maturity of Debt Obligations | ||
October 1, 2021 to December 31, 2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 39,035 | |
Total Payments | 39,035 | |
Unamortized discounts & deferred financing costs | (231) | |
Debt obligations | $ 38,804 | $ 59,157 |
Debt Obligations and Warrants - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Debt Instrument [Line Items] | |||||||
Debt obligations | $ 120,167 | $ 120,167 | $ 120,167 | $ 334,972 | |||
Total Payments | 134,035 | 134,035 | $ 134,035 | ||||
Net losses on retirement of debt | $ 0 | $ 0 | $ (30,198) | $ (693) | |||
Warrants, Term | 10 years | 10 years | 10 years | ||||
Warrants, Exercise price | $ 8.74 | $ 8.74 | $ 8.74 | $ 11.93 | |||
Class A Shares | |||||||
Debt Instrument [Line Items] | |||||||
Warrants, Number of shares issuable | 4,338,015 | 4,338,015 | 4,338,015 | ||||
2020 Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 320,000 | ||||||
Debt obligations | $ 81,363 | $ 81,363 | $ 81,363 | 275,800 | |||
Call Premium due in addition to make-whole premium on prepayment occurring prior to second anniversary of Closing Date | 3.00% | ||||||
Call Premium on prepayment occurring on or after second anniversary, but prior to third anniversary of Closing Date | 3.00% | ||||||
Call Premium on prepayment occurring on or after fourth anniversary of Closing Date | 0.00% | ||||||
Call Premium on prepayment occurring on or after third anniversary, but prior to fourth anniversary of Closing Date | 2.00% | ||||||
Repayment Of Debt Amount For Which Prepayment Premium Is Not Charged - Beginning Of Range | 175,000 | $ 175,000 | 175,000 | ||||
Amount Of Debt Prepayment For Which Prepayment Premium Is Not Charged, As Amended | 225,000 | 225,000 | 225,000 | ||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 1,750 | 1,750 | 1,750 | ||||
Total Payments | 95,000 | 95,000 | 95,000 | ||||
Net losses on retirement of debt | 30,200 | ||||||
Minimum amount of fee-paying assets under management covenant | 20,000,000 | ||||||
2020 Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Repurchase agreements credit facility borrowing capacity | 25,000 | 25,000 | 25,000 | ||||
Repayments of Debt | $ 175,000 | $ 224,400 | 225,000 | ||||
Undrawn commitment fee | 0.50% | ||||||
CLO Investments Loans | |||||||
Debt Instrument [Line Items] | |||||||
Debt obligations | 38,804 | $ 38,804 | 38,804 | 59,157 | |||
Total Payments | 39,035 | 39,035 | 39,035 | ||||
Collateral on CLO Investments Loans | $ 43,300 | $ 43,300 | $ 43,300 | $ 66,500 | |||
LIBOR | 2020 Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Floor on Variable Rate | 0.75% | ||||||
Debt Instrument, Basis Spread on Variable Rate | 6.25% | ||||||
Base Rate | 2020 Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Floor on Variable Rate | 1.75% | ||||||
Debt Instrument, Basis Spread on Variable Rate | 5.25% |
Debt Obligations and Warrants - Schedule of CLO Investments Loans (Detail) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Debt Instrument [Line Items] | ||
Borrowings outstanding | $ 120,167 | $ 334,972 |
CLO Investments Loans | ||
Debt Instrument [Line Items] | ||
Borrowings outstanding | $ 38,804 | 59,157 |
CLO Investments Loans | June 07, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity date | Nov. 16, 2029 | |
Borrowings outstanding | $ 17,216 | 17,200 |
CLO Investments Loans | June 07, 2017 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.48% | |
CLO Investments Loans | August 02, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 21, 2030 | |
Borrowings outstanding | $ 21,588 | 21,584 |
CLO Investments Loans | August 02, 2017 | LIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.41% | |
CLO Investments Loans | September 14, 2017 | ||
Debt Instrument [Line Items] | ||
Maturity date | Sep. 14, 2024 | |
Borrowings outstanding | $ 0 | 19,868 |
CLO Investments Loans | September 14, 2017 | EURIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.21% | |
CLO Investments Loans | February 27, 2020 | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 11, 2022 | |
Borrowings outstanding | $ 0 | $ 505 |
CLO Investments Loans | February 27, 2020 | EURIBOR | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.80% |
Securities Sold under Agreements to Repurchase - Additional Details (Details) - Repurchase agreements credit facility € in Millions |
Sep. 30, 2021
EUR (€)
|
---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |
Repurchase agreements credit facility borrowing capacity | € 200.0 |
Repurchase agreements credit facility undrawn balance | € 61.4 |
Securities Sold under Agreements to Repurchase - Balance Sheet Offsetting (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Transfers and Servicing of Financial Assets [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 159,218 | $ 122,638 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities in the Consolidated Balance Sheet | 159,218 | 122,638 |
Securities Transferred | 159,218 | 122,638 |
Net Amount | $ 0 | $ 0 |
Securities Sold under Agreements to Repurchase - Remaining Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | $ 159,218 | $ 122,638 |
CLOs | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | 159,218 | 122,638 |
CLOs | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | 0 | 0 |
CLOs | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | 0 | 0 |
CLOs | 30-90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | 0 | 0 |
CLOs | Greater Than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Net Amounts of Liabilities in the Consolidated Balance Sheet | $ 159,218 | $ 122,638 |
Other Assets, Net - Components of Other Assets (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Fixed Assets: | ||
Leasehold improvements | $ 48,518 | $ 52,801 |
Computer hardware and software | 54,854 | 50,085 |
Furniture, fixtures and equipment | 8,279 | 8,411 |
Accumulated depreciation and amortization | (82,886) | (80,833) |
Fixed assets, net | 28,765 | 30,464 |
Goodwill | 22,691 | 22,691 |
Prepaid expenses | 12,477 | 19,229 |
Other | 7,701 | 10,116 |
Total Other Assets, Net | $ 71,634 | $ 82,500 |
Other Liabilities - Components of Other Liabilities (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued expenses | $ 16,144 | $ 16,904 |
Uncertain tax positions | 8,250 | 8,250 |
Due to funds | 2,768 | 11,933 |
Unused trade commissions | 2,160 | 3,494 |
Other | 5,458 | 10,864 |
Total Other Liabilities | $ 34,780 | $ 51,445 |
Revenues - Management Fees and Incentive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | $ 76,820 | $ 68,053 | $ 227,391 | $ 195,389 |
Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 27,031 | 41,525 | 134,379 | 89,085 |
Multi-strategy funds | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 39,585 | 33,239 | 114,185 | 94,826 |
Multi-strategy funds | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 16,394 | 22,013 | 97,507 | 58,377 |
Opportunistic credit funds | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 13,141 | 12,512 | 39,065 | 33,308 |
Opportunistic credit funds | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 9,779 | 16,585 | 22,038 | 24,005 |
Institutional Credit Strategies | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 14,856 | 13,302 | 46,360 | 36,653 |
Institutional Credit Strategies | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 0 | 0 | 0 | 0 |
Real estate funds | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 9,238 | 9,000 | 27,781 | 30,594 |
Real estate funds | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 858 | 2,927 | 14,834 | 6,703 |
Other | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | 76,820 | 68,053 | 0 | 8 |
Other | Incentive income | ||||
Disaggregation of Revenue [Line Items] | ||||
Investment management revenues | $ 27,031 | $ 41,525 | $ 0 | $ 0 |
Revenues - Income and Fees Receivable (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Income and Fees Receivable [Line Items] | ||
Income and fees receivable | $ 45,876 | $ 539,623 |
Management fees | ||
Income and Fees Receivable [Line Items] | ||
Income and fees receivable | 26,354 | 25,937 |
Incentive income | ||
Income and Fees Receivable [Line Items] | ||
Income and fees receivable | $ 19,522 | $ 513,686 |
Revenues - Unearned Income and Fees (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Unearned Income and Fees [Line Items] | ||
Unearned income and fees | $ 70,042 | $ 61,880 |
Management fees | ||
Unearned Income and Fees [Line Items] | ||
Unearned income and fees | 737 | 78 |
Incentive income | ||
Unearned Income and Fees [Line Items] | ||
Unearned income and fees | $ 69,305 | $ 61,802 |
Revenues - Additional Details (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Incentive income | ||
Disaggregation of Revenue [Line Items] | ||
Unearned incentive recognized of the beginning unearned balance | $ 9.8 | $ 3.9 |
Income Taxes - Reconciliation of Statutory U.S. Federal Income Tax Rate (Detail) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Loss (income) passed through to noncontrolling interests | 145.73% | (0.39%) | (71.48%) | (1.38%) |
Foreign income taxes | 81.04% | 4.57% | (114.01%) | (2.03%) |
RSU excess deferred income tax write-off | 8.39% | 2.29% | (20.58%) | (0.44%) |
State and local income taxes | 81.03% | 5.44% | (53.09%) | 3.47% |
Nondeductible amortization of Partner Equity Units | 31.04% | 5.66% | (54.32%) | (4.36%) |
Nondeductible interest expense | 0.00% | 0.85% | 0.00% | (0.74%) |
Foreign tax credits and deductions | (17.02%) | (1.94%) | 23.94% | 0.38% |
Change in fair value of warrants | 88.53% | 0.00% | (269.42%) | 0.00% |
Disallowed executive compensation | 16.44% | 3.70% | (15.19%) | (0.74%) |
Other, net | (7.61%) | (2.18%) | (0.60%) | (0.36%) |
Effective Income Tax Rate | 448.57% | 39.00% | (553.75%) | 14.80% |
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits | $ 8.3 | $ 8.3 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 4.8 |
General, Administrative and Other - Components of General, Administrative and Other Expenses (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Other Income and Expenses [Abstract] | ||||
Occupancy and equipment | $ 9,627 | $ 7,549 | $ 24,970 | $ 22,685 |
Information processing and communications | 6,033 | 5,223 | 16,890 | 15,881 |
Recurring placement and related service fees | 4,696 | 4,057 | 14,290 | 14,229 |
Professional services | 4,487 | 3,836 | 12,176 | 18,781 |
Impairment of right-of-use asset | 11,240 | 0 | 11,240 | 0 |
Insurance | 2,281 | 2,118 | 6,773 | 6,374 |
Business development | 281 | 237 | 591 | 1,600 |
Other expenses | 1,027 | 1,405 | 5,140 | 5,296 |
General, Administrative and Other Expenses before Legal Provisions | 39,672 | 24,425 | 92,070 | 84,846 |
Legal provisions | 0 | 2,040 | 0 | 118,940 |
Total General, Administrative and Other | $ 39,672 | $ 26,465 | $ 92,070 | $ 203,786 |
Earnings (Loss) Per Class A Share - Additional Information (Detail) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
RSUs | ||||
Earnings Per Share [Line Items] | ||||
Vested RSUs included in weighted-average Class A Shares outstanding | 130,528 | 297,927 | 176,516 | 473,070 |
Loss Per Class A Share - Computation of Basic and Diluted Earnings (Loss) Per Class A Share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Class A Shareholders | $ (4,338) | $ 8,017 | $ (2,817) | $ (45,489) |
Net Income (Loss) Attributable to Class A Shareholders, Diluted | $ (4,338) | $ 12,281 | $ (20,537) | $ (104,623) |
Weighted-average Class A Shares outstanding - basic | 25,334,903 | 22,729,285 | 24,743,527 | 22,542,047 |
Weighted-average Class A Shares outstanding - diluted | 25,334,903 | 49,737,060 | 40,763,033 | 38,559,963 |
(Loss) Earnings per Class A Share - basic | $ (0.17) | $ 0.35 | $ (0.11) | $ (2.02) |
(Loss) Earnings per Class A Share - diluted | $ (0.17) | $ 0.25 | $ (0.50) | $ (2.71) |
Group A Units | ||||
Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Class A Shareholders, Effect of dilutive securities | $ 0 | $ 4,264 | $ (17,720) | $ (59,134) |
Weighted-Average Class A Shares Outstanding, Effect of dilutive securities (in shares) | 0 | 16,019,506 | 16,019,506 | 16,017,916 |
Number of Antidilutive Units and Warrants Excluded from Diluted Calculation | 16,019,506 | 0 | 0 | 0 |
Group E Units | ||||
Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Class A Shareholders, Effect of dilutive securities | $ 0 | $ 0 | $ 0 | |
Weighted-Average Class A Shares Outstanding, Effect of dilutive securities (in shares) | 0 | 10,988,269 | 0 | 0 |
Number of Antidilutive Units and Warrants Excluded from Diluted Calculation | 13,009,152 | 0 | 13,010,373 | 13,386,679 |
RSUs | ||||
Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Class A Shareholders, Effect of dilutive securities | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted-Average Class A Shares Outstanding, Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Number of Antidilutive Units and Warrants Excluded from Diluted Calculation | 3,289,109 | 4,110,587 | 3,463,072 | 4,186,109 |
Warrants | ||||
Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Class A Shareholders, Effect of dilutive securities | $ 0 | $ 0 | ||
Weighted-Average Class A Shares Outstanding, Effect of dilutive securities (in shares) | 0 | 0 | ||
Number of Antidilutive Units and Warrants Excluded from Diluted Calculation | 4,338,015 | 4,338,015 |
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Related Party Transaction [Line Items] | |||
Tax receivable agreement liability | $ 183,092 | $ 190,292 | |
Payments under Tax Receivable Agreement | 7,200 | $ 18,200 | |
Executive Managing Directors, Employees and Other Related Parties | Payments Under Tax Receivable Agreement | |||
Related Party Transaction [Line Items] | |||
Tax receivable agreement liability | 88,300 | ||
Payments under Tax Receivable Agreement | 3,900 | 10,000 | |
Executive Managing Directors, Employees and Other Related Parties | Amount of Related Party Assets Under Management | |||
Related Party Transaction [Line Items] | |||
Assets under management | $ 938,900 | $ 957,100 | |
Executive Managing Directors, Employees and Other Related Parties | Percent of Related Party Assets Under Management Not Charged Fees | |||
Related Party Transaction [Line Items] | |||
Percent of assets under management not charged management and incentive fees | 54.00% | 48.00% | |
Director | |||
Related Party Transaction [Line Items] | |||
Commitment to purchase investment | $ 3,000 | ||
Funded amount of the commitment to purchase investment | $ 210 |
Related Party Transactions - Management Fees and Incentive Income Earned from Related Parties and Waived Fees (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Management fees | ||||
Related Party Transaction [Line Items] | ||||
Investment management revenues | $ 76,820 | $ 68,053 | $ 227,391 | $ 195,389 |
Incentive income | ||||
Related Party Transaction [Line Items] | ||||
Investment management revenues | 27,031 | 41,525 | 134,379 | 89,085 |
Fees charged on investments held by related parties: | Management fees | Executive Managing Directors, Employees and Other Related Parties | ||||
Related Party Transaction [Line Items] | ||||
Investment management revenues | 869 | 982 | 2,696 | 2,881 |
Fees charged on investments held by related parties: | Incentive income | Executive Managing Directors, Employees and Other Related Parties | ||||
Related Party Transaction [Line Items] | ||||
Investment management revenues | $ 154 | $ 257 | $ 2,307 | $ 688 |
Commitments and Contingencies - Estimated Potential Payments Under Tax Receivable Agreement (Detail) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Potential Payments Under Tax Receivable Agreement | ||
October 1, 2021 to December 31, 2021 | $ 20,035 | |
2022 | 15,903 | |
2023 | 27,821 | |
2024 | 21,954 | |
2025 | 26,098 | |
2026 | 31,729 | |
Thereafter | 39,552 | |
Total Payments | $ 183,092 | $ 190,292 |
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Sep. 30, 2021 |
Dec. 31, 2018 |
|
Loss Contingencies [Line Items] | |||
Percentage of tax savings to be paid under tax receivable agreement | 85.00% | ||
Percentage of tax savings to be paid under tax receivable agreement to remaining EMDs and Ziffs | 69.00% | ||
Tax receivable agreement liability | $ 190,292 | $ 183,092 | |
Unfunded capital commitments of the Company to funds managed | 70,700 | ||
Unfunded capital commitments by EMDs | 48,600 | ||
Capital commitments by EMDs | $ 32,200 | ||
Tax Year 2018 | |||
Loss Contingencies [Line Items] | |||
Percentage of tax savings to be paid under tax receivable agreement | 85.00% | ||
Tax Year 2019 | |||
Loss Contingencies [Line Items] | |||
Percentage of tax savings to be paid under tax receivable agreement | 75.00% | ||
Africo Litigation | |||
Loss Contingencies [Line Items] | |||
Payments for Legal Settlements | $ 138,000 |
Subsequent Events - Additional Information (Detail) - Subsequent Event $ / shares in Units, $ in Millions |
Nov. 03, 2021
USD ($)
$ / shares
shares
|
---|---|
Subsequent Event [Line Items] | |
Dividends announcement date | Nov. 03, 2021 |
Cash dividend (in dollars per share) | $ / shares | $ 0.28 |
Dividends payable date | Nov. 22, 2021 |
Dividends record date | Nov. 15, 2021 |
Class A Shares | |
Subsequent Event [Line Items] | |
Shares Exchanged for Group A Units | 317,926 |
Group A Units | |
Subsequent Event [Line Items] | |
Units Exchanged | 993,512 |
Cash Paid for Units Exchanged | $ | $ 11.1 |
Price per Exchanged Unit | $ / shares | $ 19.68 |
Group A-1 Units | |
Subsequent Event [Line Items] | |
Units Exchanged | 534,969 |
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