Republished with full copyright permissions from The San Francisco Press.

Sculptor Capital Management, once a prominent hedge fund, has been sold for $639 million, bringing an end to a long and contentious feud between its billionaire founder, Daniel Och, and his former protégé, Jimmy Levin. This takeover marks another milestone in the tumultuous history of the fund, highlighting the personal animosity and power struggle that underlies its downfall.

Approximately a year-and-a-half ago, Dan Och embarked on a mission to dismantle the hedge fund he had painstakingly built into an industry powerhouse. This was not his first encounter with controversy, as he had previously faced allegations of bribing African politicians and tampering with his succession plan. Despite these earlier instances, Och’s determination to undermine his own creation seemed resolute this time.

When Och expressed his concerns about the corporate governance he had established, the substantial compensation of his former waterskiing instructor and chosen successor Jimmy Levin, and the erosion of shareholder value, the hedge fund, which once bore Och’s name, seemingly brushed them aside. In response, Och resorted to resurfacing discredited rape allegations against Levin, a move that demonstrated his unwavering commitment to exacting revenge, regardless of the consequences.

Ultimately, Och succeeded in his mission for vengeance. Sculptor Capital Management has been acquired for $639 million, a significant amount, although it pales in comparison to the funds the fund has paid to settle bribery allegations or the compensation package that triggered Och’s initial discontent. Nonetheless, the victory for Och lies in removing Levin from the position he meticulously appointed him to, signaling the end of his protégé’s tenure or does it?

Under the agreement, Rithm Capital will hold Sculptor Capital Management as an independent subsidiary, with its existing management and investment staff remaining intact. Jimmy Levin, despite the acrimonious feud with Och, will continue to lead Sculptor’s investment operations and report to Rithm’s CEO, Michael Nierenberg. Levin’s decision to remain in his role had a tangible impact, potentially costing him around $40 million but allowing him to retain voting power over more than 14 million Sculptor shares, amounting to approximately $150 million.