Sculptor Capital Management, Inc. (NYSE:SCU) Q3 2022 Earnings Call Transcript

Bill Katz: Okay. Second question, in terms of the commentary for yourself or Dava, in terms of your variable minimum expense of $17 million or so, it sounds like that’s going to persist into the fourth quarter, maybe some upside on the discretionary side. So as we think about 2023, is there any strategic flexibility here to flex that down or is there a conundrum here that you have good relative, but weak absolute and the competitive environment is such that you have to forego some FRE margin here to sort of keep things intact?

Jimmy Levin: There is definitely not room to flex that down. That minimum is a minimum. Implying if anything, we would seek to make investments in our people above that level in the fourth quarter to some extent in order to keep the great talent we have and attract new talent that we will need over time. So you should think of the minimum as a floor, not a ceiling for the fourth quarter.

Bill Katz: Okay. And just one more, and this is a rather pointed question. I apologize for it, but there’s been a fair amount of sort of public discourse on this. Where does the board stand in terms of third-party, specific third-party interest to potential franchise sale?

Dava Ritchea : Sure, I’ll take that one on. The board made a public statement in response to Mr. Och’s 13D filing that will refer you to on that matter, but high level to paraphrase it. The Board is always open to exploring any avenue that has the potential to enhance shareholder value.

Bill Katz: I guess that’s it for me. Thank you.

Operator: I’m showing no further questions in the queue at this time. I’d like to hand the call back to Ms. Conti for closing remarks.

Ellen Conti : Thank you, Doug, and thanks everyone for joining us today and for your interest in Sculptor Capital. If you have any questions, please don’t hesitate to reach out. Thank you.

Operator: This does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day!