Sculptor Capital Management is reshaping its investment leadership framework as it prepares for a potential future without chief investment officer Jimmy Levin, introducing a new governance model designed to support succession and long-term stability.

The $38bn alternative asset manager has created an “Office of the CIO” to oversee strategy across its multi-strategy and opportunistic credit platforms. The structure brings together Levin alongside senior executives including global corporate credit head Brett Klein, global asset-based finance head Udai Bishnoi, and Chief Risk Officer Peter Wallach, according to a recent investor letter.

Under the new arrangement, Levin and Klein will act as co-chairs with ultimate investment decision-making authority, while the broader team is intended to ensure continuity across the firm’s investment process.

Although the firm has not formally announced a timeline, people familiar with the matter expect Levin could eventually step back, potentially by late 2026 or early 2027. Sculptor has stated that no final decision has been made, adding that any transition would be gradual and carefully managed, with Levin remaining in an advisory capacity if he departs.

The restructuring reflects a broader trend across hedge funds as firms seek to institutionalise leadership beyond founder- or key-person dependence. Industry peers such as Millennium Management and DE Shaw & Co have implemented similar frameworks, using layered management or executive committees to distribute decision-making authority and reduce succession risk.

Sculptor Capital Management has itself undergone a prolonged period of transition in recent years. Originally founded as Och-Ziff Capital Management, the firm experienced leadership disputes, regulatory challenges, and significant investor outflows before rebranding as Sculptor and eventually being acquired by Rithm Capital Corp. in 2023 for $720m.

The latest organisational changes are being positioned as part of a broader effort to modernise governance and align leadership more closely with day-to-day portfolio management across its credit and multi-strategy platforms, while reinforcing long-term operational resilience.