Good morning, everyone, and welcome to Sculptor Capital's second quarter 2022 earnings call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. If anyone should require assistance during the call, please press Star and then the zero on your touchtone telephone. As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Ellen Conti, Head of Corporate Strategy at Sculptor Capital. Please proceed. Thanks, Maria. Good morning, everyone, and welcome to our call. Joining me are Jimmy Levin, our Chief Investment Officer and Chief Executive Officer, Wayne Cohen, our President and Chief Operating Officer, and Dava Ritchea, our Chief Financial Officer. Today's call contains forward-looking statements, many of which are inherently uncertain and outside of our control. Before we get started, I need to remind you that Sculptor Capital's actual results may differ, possibly materially, from those indicated in these forward-looking statements. Please refer to our most recent SEC filings for a description of the risk factors that could affect our financial results, our business, and other matters related to these statements. The company does not undertake any obligation to publicly update any forward-looking statement. During today's call, we will be referring to economic income, distributable earnings, and other financial measures that are not prepared in accordance with the U.S. GAAP. Information about and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available in our earnings release, which is posted on our website. No statements made during this call should be construed as an offer to purchase shares of the company or an interest in any of our funds or any other entities. Today, we reported a GAAP net loss of $8.1 million for the second quarter of 2022, or $0.32 per basic and $0.89 per diluted Class A share. Our distributable earnings were $32 million for the second quarter, or $0.55 per fully diluted share. Additionally, we declared a cash dividend of $0.13 per Class A share. All earnings metrics discussed by both Jimmy and Dava will be on our non-GAAP economic income and distributable earnings metrics. I will now hand the call over to Jimmy. Morning, everybody. Thanks for joining. Let's start with the macro environment. From a financial market perspective, the first half of the year has been one of the worst on record. While pretty much all major asset classes experienced dramatic declines, I think it's most informative to think about the 60/40 portfolio because some version of that represents the vast majority of both institutional and retail capital allocations. The 60/40 portfolio had its worst performance in 90 years for the start of the year. Of course, that was driven by the laundry list of all the issues we all now know too well, deteriorating global GDP, growth outlook, record inflation, rising interest rates, central bank tightening, supply chain disruptions, the rolling and disparate COVID impacts being felt around the world, and last but not least, the war in Europe. All this taking place against a backdrop of what's been pretty significant value distortion in risk assets over the last 2+ years. Notably within that, credit markets, which had been relatively well behaved, for the initial part of the year, that contagion hit towards the end of the second quarter and started to create meaningful dislocations across pretty much all types of credit assets, both public and private. As it relates to Sculptor, this has created a robust and ever-expanding universe of attractive investment opportunities for our funds. Across our businesses, we do a lot of different types of investing, but I would say, simply said, the same type of investments that 9 or 12 months ago offered mid-single-digit rates of prospective return, today offer mid-double-digit rates of prospective return. From a top-down standpoint, as it relates to how we deploy capital, notwithstanding what I just said, we think we need to remain disciplined. The economy is probably getting worse. Inflation is likely to be more stubborn than consumers, companies or central bankers hope. I'd say that hope has most definitely become more hopeful over the last month, and we're not sure that's quite warranted yet. For this type of environment, flexible capital is required to capitalize on the opportunity set, and we think we're well-positioned across all our funds, given our funds are generally opportunistic and generally unconstrained in their approach to investing. Said simply, dislocation can be good for our business in terms of increasing the number of attractive opportunities for our funds to invest in that help create future returns and in our ability to showcase outperformance against other risk asset classes in the present moment. In the second quarter, we delivered solid financial results for shareholders and relative outperformance for our fund clients, notwithstanding the challenging market environment. Opportunistic Credit Funds delivered what we think are exceptional returns relative during the quarter and continue to compound on year-to-date outperformance versus pretty much all relevant benchmarks. Our real estate funds continue to achieve terrific realizations on existing investments and are now able to deploy capital into the type of environment that we think sets up for similarly successful future investments. Our multi-strategy funds have experienced a portion of the drawdown in risk assets year to date, more than we targeted, but fared better overall than the market, and we're broadly in line with expectations. That being said, incentive income is, of course, based on absolute performance, and our multi-strategy funds are in a year-to-date loss position. I will say this is not the first time, nor will it likely be the last time that such is temporarily the case. We've seen periods of market dislocation historically act as a catalyst for fundraising in certain areas, particularly credit and real estate related, and a dampener for fundraising more broadly. This is what we hear in the market, we see in the market, we hear it from our peers. Capital allocators of all shapes and sizes, in the type of market environment that I described in the opening, tend to pause and look inwards during a period of time, kinda take inventory and reset. Especially when that stress is so broad-based across the typical portfolio. I think historically there's been periods of dislocation where one asset class does worse, one asset class does better. I think in this environment where all the major food groups of an institutional allocation have suffered so significantly, that generally creates a slowdown in all activity. Short-term flows are always difficult for us to forecast. In the current time of market stress, I would say even more so the case. Notwithstanding that, I'd say a highlight or an area to focus on within all that is the Sculptor Tactical Credit Fund, we call that STAX, where we held a second closing on July 1st with $250 million, bringing the total committed capital to $370 million. That is a private credit drawdown style fund, building on the track record of six or seven similar funds over the last decade, as well as our open-ended opportunistic fund. This is an asset class where we've long had expertise. We believe we have a great reputation, and we believe that in this environment, it's particularly relevant to clients, and specifically in a private credit format. We plan to have additional closes in that fund, and we plan to continue to grow that offering over time into one of our core areas. We also had, as we discussed before, our first close on our second real estate credit fund. That was in the first quarter. We're continuing to look to hold subsequent closings, as well as partner with our real estate clients, across the board as we develop new areas to grow together and help deploy capital into the space. In our ICS business, we continue to raise additional CLOs. CLO market is obviously not insulated from everything else that's going on, and that market is slower than it has been over the last several years. The breadth and depth of our investment capabilities and our performance for our clients in our long duration businesses has resulted in growth of our longer term AUM, both absolute and relative. It also helps to diversify the platform, and I think we saw the benefits of that collectively in our second quarter financial numbers. It adds stability and diversity to our earnings stream, which is particularly helpful in times of market stress. Like we saw in the second quarter, investments that we make across different vintages, different funds, different products, that can create return streams, in an idiosyncratic fashion that pay off when they pay off. That's what we experienced in the second quarter this year. Overall at the firm, we remain well-positioned with a strong adjusted net asset position. This is something we've talked about for the last several years. It was an area that we felt was of absolute critical importance to build up and improve on. We said we needed to do that because we wanted to have a stronger business in tough times for defense, and we wanted to have the ability to play offense. I would say right now we are doing both. We are getting the benefit of that balance sheet resilience from a defensive standpoint, and we are doing what we think is opportunistic offensively with that balance sheet strength. With that, we continue to repurchase shares during the quarter. We did so at levels that we think are very attractive. We went through this math I think two quarters ago. When we think about the combination of recurring earnings, the value of our balance sheet or NAV, and of course, the potential incentive income after variable bonuses that we can earn in any period of time across any number of funds, with that, the buyback seems as frankly a great use of capital and maybe the best use of capital. While markets will continue to be volatile, or I should say may continue to be volatile near term, we think we're in a position of strength to capitalize on that on many fronts, both in our funds and at the level of our business. That's by making attractive investments for our clients, by being stewards of our clients' capital and protecting it, by showcasing the value of our investment capabilities, and doing that with a strong balance sheet, a reasonable earnings profile, excluding incentive income and earnings power with the benefit of incentive income. With all that together, we think we can continue to generate long-term earnings growth. With that, I will hand it over to Dava to get into the financials. Thank you, Jimmy, and good morning, everyone. I'll provide some highlights on our financials for the quarter and overall capital management strategy. During the quarter, we've generated Distributable Earnings of $32 million or $0.55 per fully diluted share, despite the overall volatility in the market environment. A portion of our Distributable Earnings this quarter were from earnings generated on our management fees, showcasing the value of recurring earnings and the progress we've made in improving the contribution from management fees to our business. We also had incentive income realizations of $44.6 million for the quarter, largely from our longer-dated funds. This highlights the testament of our long-term performance and the value of diversification of our platform in terms of vintage, products, and funds. As an offset, we had compensation expense directly linked to this incentive income, which increased our compensation expense versus our normal minimum quarterly fixed bonus accrual. As a reminder, we typically recognize compensation expense in the quarter in which we generate the income for our long-dated funds, as we did this quarter, and at year-end for our open-ended funds. As seen this quarter, our longer-dated funds can generate significant incentive realizations during otherwise challenging market conditions when we perform for our clients. Turning to the balance sheet, we remain well-positioned with a strong Adjusted Net Assets level and significant liquidity. Our Adjusted Net Assets have increased from a deficit of $55.8 million in 2018 to $304.2 million as of June 30th, which is up quarter-over-quarter. This balance sheet position significantly increases the resilience of our platform and has allowed us to start playing offense that we believe will lead to future long-term shareholder value while returning capital to shareholders via our dividend and buyback. In the second quarter, we also continued to return capital to shareholders. We executed on our buyback and repurchased 1.2 million shares at an average price of $11.34, for a total of $13.2 million. This brings total life-to-date repurchases through June thirtieth to about 1.6 million shares for a total of $19.5 million. At recent stock prices, we believe this is one of the most attractive uses of our capital base. We also announced a cash dividend of $0.13 per Class A share for the second quarter, which represents 10% of Distributable Earnings in line with the guidance that we gave last quarter. We expect to target a dividend of 10% of Distributable Earnings to Class A shareholders for the third quarter. In the fourth quarter, we expect to true it up, to bring full-year dividends to between 20% and 30% of Distributable Earnings. This pace during the year is a more sensible, prudent approach to our dividend policy as it better aligns dividend payments with earnings given the timing of incentive income and bonus expenses. Importantly, this is not a change to our annual dividend policy, just to the timing of payments throughout the year. As a reminder, during the distribution holiday, we only pay dividends to Class A shareholders. Taking the dividends and share repurchases together for the second quarter, we are returning $16.4 million to shareholders, $13.2 million via the share repurchase program and $3.2 million via our dividend. We will continue to be thoughtful in maintaining the ongoing balance of a strong core balance sheet, deploying capital to areas of growth, and returning capital to shareholders. As Jimmy discussed, we are well positioned to endure the current market volatility given both our positioning in our funds and on our corporate balance sheet. With that, I'll hand the call over to the operator and open for any questions. Thank you. If you have a question at this time, please press star followed by one on your touch tone telephone. If your question has been answered or you would like to remove yourself from the queue, please press the pound key. One moment, please, while we pull for a question. Our first question comes from Gerald O'Hara with Jefferies. Please proceed with your question. Great. Thanks. Thanks, and good morning, folks. Question around just the incentive income and how we should think about sort of the pace of crystallization and generation of that incentive as you start to shift. I think you mentioned in the prepared commentary in the earnings release that some of the products won't necessarily have the kind of year-end anniversary that we're accustomed to. Any sort of color or context there would be helpful. Sure. We have not historically given forecasts on what that incentive income could look like on a go-forward basis. For our long-dated funds, this is based on realizations and harvests, which are, as you know, a little bit difficult to forecast. That isn't something that we have given color on a long-term basis. For our annual funds, which is primarily our multi-strategy fund and our credit opportunities fund, we would expect annual crystallizations at the end of the year should there be incentive income generated by fund performance. Okay, that's helpful. Maybe just to clarify, are there additional products coming online or are there, you know, additional products in the mix that aren't necessarily tied to that annual, kind of year-end or that we should at least sort of, you know, watch for as they grow? The main portion of that is gonna be from our real estate funds, and we have a series of equity real estate funds at varying vintages, and also from our newly launched STAX fund, which Jimmy had mentioned earlier. Lastly, there is a portion in our Customized Credit Focused Platform, which has a multi-year crystallization period, which will not be crystallizing this year, but will in future years. Okay, that's helpful. Thanks for the explanation there. Just one more from me. Can you kind of remind us where we are, in terms of the Distribution Holiday? What sort of percentage of the way through that earn-out, kind of through quarter end? Yeah. One second. We'll be putting this number into the Form 10-Q. We have about $75 million remaining of the- Great 100 that we had to begin with. Okay. Thanks for taking my questions this morning. Appreciate it. Our next question comes from Patrick Davitt with Autonomous Research. Please proceed with your question. Good morning. Thanks. My first question is on kind of the broader fundraising pipeline. You mentioned STAX, the second real estate credit fund. On STAX, is this something that you're expecting kinda always be in the market, or do you have a hard cap in mind? In that same vein, any view on the potential size of the real estate credit fund? STAX is a closed-end fund, which means it's not evergreen in the market. It has a fundraising window. Speak to that? Yeah. Two years next year. Yeah, I think it was a year from the July first close, so call it that. That's open for a year. In terms of sizing, we generally look to have funds that are bigger than their predecessor fund, and I think our last closed-end credit fund was around $500-$600 million, several years ago. The real estate credit fund, credit fund two, that is, you know, give generally the same thoughts. We, you know, we try to meet or exceed prior funds, and fund one was around $700 million. Mm-hmm. Okay, great. That's helpful. As we get closer to 4Q, it looks increasingly unlikely that the Master Fund will have a performance fee. In that vein, if that performance fee is zero, do you think, like, the minimum annual bonus you need to pay people would put the distributable earnings into the red for the quarter, or is this too hard to say? Dava can run through that math or figure out if that math is within guidance we would give. Okay Big picture, the minimum bonus accrual is meant to represent the bonuses that we think we would pay to the extent there's not annual incentive income being generated. Obviously, when we generate incentive income off of either a BRII or funds that, you know, have direct carry in them, you see that bonus roll through at the same time, which is what you saw in this quarter. The minimum bonus accrual is meant to represent the scenario you described. Obviously, it's a best efforts on our part to try to create that accrual, but that's what we have. That's right. When you look at effectively the earnings from our management fee stream is what you would be looking at in that scenario, and you'd be thinking about what your run rate management fees are, plus your fixed expenses, which would be salary and benefits, your fixed bonus accrual, and G&A. We talked about that being a positive number for this quarter. Okay. Last one for me. If you're willing to, since you're not giving the monthly performance anymore, given the market reversal in July, would you be willing to give it for the last month? We are not going to do that. I will acknowledge that risk assets generally had a nice move, and we participated in some of that. Got it. Thank you. I'm not showing any further questions. I will now turn the call back over to Ms. Conti. Thank you, Maria. 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. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.