Brian Bader
Pershing Square Capital Management (“PSCM”), the investment firm controlled by billionaire Bill Ackman, sold Pershing Square Holdco to a group of investors for $1.05B 10 % common stock equity, Pershing Square Holdings, Inc. is a newly formed limited partnership that owns 100% of PSCM including Arch Capital group(NASDAQ:ACGL).
last week, wall street journal Pershing Square will reportedly sell some shares to investors as a precursor to an initial public offering that could come as early as next year.
Other investors in the group include BTG Pactual, Consulta Limited, ICONIQ Investment Management, international family office group Menora Mivtachim Holdings and others, the company said on Monday.
In connection with the sale, PSCM completed an internal reorganization of its ownership structure that will result in Pershing Square’s voting securities being indirectly owned by a limited liability company that will be controlled by Pershing Square’s senior management, including Bill A. Bill Ackman is the largest shareholder.
This restructuring will not affect PSCM’s provision of investment management services to funds managed by PSCM, including Pershing Square Holdings (OTCPK:PSHZF). The company said the restructuring was a technical change designed to minimize the likelihood of being viewed as a diversion in the future, an important issue to address in connection with strategic sales transactions.
In connection with the restructuring, each of PSCM’s funds, including Pershing Square Holdings ( OTCPK:PSHZF ), approved deemed assignments of its investment management agreements.
Following the transaction and restructuring, Ben Hakim has been named president of PSCM, in addition to continuing as a member of the investment team. Hakim, a partner at Pershing Square, joined the investment team in 2012 after 23 years at Blackstone (BX) where he served as a senior managing director. Nick Botta will become PSCM Vice Chairman and join the Pershing Square Board of Directors. He previously served as president of PSCM.
Concurrent with the completion of the minority investment, Pershing Square established an independent board of directors consisting of five independent directors and four affiliates of PSCM. The independent directors are Kerry Murphy Healey, President Emeritus of Babson College; Orion Hindawi, Executive Chairman of Tanium; Marco Kheirallah, Partner of Lumina Capital; Nicholas Lamotte, Executive Chairman of Consulta; Christine Todd Todd, chief investment officer of Arch Capital Group (ACGL).
Affiliated directors include Bill Ackman, Chairman and Chief Executive Officer; Ryan Israel, Chief Information Officer; Botha; and Halit Coussin, Chief Legal Officer.
