The American hedge fund Pershing Square, led by renowned investor Bill Ackman, has announced its intention to invest $1 billion in Howard Hughes through the purchase of non-convertible preferred shares without voting rights. At the same time, Howard Hughes reported the acquisition of the insurance company Vantage for approximately $2.1 billion.
This is reported by Finway
Transformation of Howard Hughes and New Investment Strategy
Pershing Square is already the largest shareholder of Howard Hughes. Bill Ackman plans to transform the company into a diversified holding that will own controlling stakes in both public and private companies. According to Ackman, this model resembles the approach of Berkshire Hathaway, which utilizes insurance assets to attract cheap capital for other business areas.
Pershing Square will manage the investment portfolio of Vantage free of charge, which is currently valued at $2.8 billion. It is known that by the end of September, about 90% of the portfolio’s assets were invested in fixed-income securities. The fund gradually plans to increase its allocation to common stocks.
“With a high degree of confidence, one can assume that the Vantage portfolio will largely resemble a typical Pershing Square portfolio,” Ackman wrote on Thursday on X. “We will certainly adhere to the same investment principles.”
Strategic Acquisition and Future Plans
The insurance company Vantage was founded in 2020, starting with $1 billion in capital from Carlyle Group Inc. and Hellman & Friedman. The management was conducted by experienced professionals, including CEO Greg Hendrick and the late Dinos Iordanou. During the latest funding round, investors committed to providing an additional $200 million in capital.
In the year leading up to September, Vantage received approximately $1.2 billion in net insurance premiums, of which 60% came from specialized insurance business, while the remainder was from reinsurance.
Ackman believes that the acquisition of Vantage will be a key milestone in transforming Howard Hughes into a diversified holding company. The financing for this deal will come from Howard Hughes’ own funds and Pershing Square’s subscription to shares. The completion of the deal is expected in the second quarter of 2026.