US-based investment adviser Pershing Square Capital Management has announced the primary sale of a 10% common equity interest in Pershing Square to a consortium of strategic investors in a deal worth $1.05bn.
Pershing Square is a newly formed limited partnership that owns full ownership of Pershing Square Capital Management.
The buyer consortium includes Arch Capital Group, Consulta, ICONIQ Investment Management, BTG Pactual (BPAC11), Menora Mivtachim, and other investors.
According to various media reports, the sale of stake comes as a precursor to a possible initial public offering (IPO) that could take place next year or in 2026. It has been reported by Reuters that investors value Pershing Square Capital Management at over $10bn.
Upon the closing of the minority investment, Pershing Square has also established an independent board of directors including five independent directors and four affiliates of Pershing Square Capital Management.
In line with the deal, Pershing Square Capital Management is completing an internal reorganisation of its ownership structure.
This will result in the voting securities of Pershing Square being indirectly owned by a limited liability company. The latter will be controlled by senior management of Pershing Square including Bill Ackman who is the largest shareholder of it.
Ackman said: “We are delighted to invite a group of world-class, long-term partners as investors in our business, which has been entirely owned by Pershing Square employees since our inception more than 20 years ago.
“This new investment will help accelerate our growth in assets under management in existing and new strategies. As always, Pershing Square will remain intensely focused on generating high, long-term returns for our investors.”
BofA Securities, Citigroup, Jefferies, Evolve, and UBS Investment Bank were placement agents while Sullivan & Cromwell and Simpson Thacher & Bartlett served as legal advisers to Pershing Square Capital Management on the transaction.
