🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Pershing Square Capital Management announces $1.05 billion equity sale

EditorIsmeta Mujdragic
Published 06/03/2024, 12:29 PM
ACGL
-
PSHP
-
PSHZF
-

NEW YORK - Pershing Square Capital Management, L.P. (PSCM) has announced the sale of a 10% equity stake in its newly established Pershing Square Holdco, L.P. to a group of strategic investors for $1.05 billion. The transaction involves key financial players including Arch Capital Group Ltd. (NASDAQ:ACGL), BTG Pactual, and others.

As part of the deal, Pershing Square has formed an independent board comprising five independent directors and four PSCM affiliates. This move is concurrent with a reorganization that will see Pershing Square's voting securities indirectly owned by a limited liability company controlled by Pershing Square's senior management.

The reorganization is considered a deemed assignment under the Investment Advisers Act of 1940, necessitating the consent of the Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) (NA:PSH) board. The board has consented to this change, which will not affect PSCM's investment management services or its obligations under existing agreements.

Ben Hakim has been appointed as President of PSCM, while Nick Botta will take on the role of Vice Chairman and join the Pershing Square board. Major financial institutions served as placement agents for the transaction, and top-tier law firms provided legal counsel.

This strategic equity sale aims to bolster Pershing Square's growth in assets under management and comes as part of a broader reorganization designed to minimize future deemed assignments.

Pershing Square Capital Management is an SEC-registered investment advisor, and Pershing Square Holdings, Ltd. is a closed-ended investment holding company.

This news is based on a press release statement.

InvestingPro Insights

In light of Pershing Square Capital Management's recent strategic moves, a glance at the InvestingPro data reveals a steady performance for Pershing Square Holdings, Ltd. (LN:PSH) over various time frames. The stock has experienced a modest 1-week price total return of 0.04%, while the 1-month and 3-month returns have been slightly higher at 0.3% and 0.87%, respectively. Over a 6-month period, the return almost mirrors the 3-month performance with a 0.93% increase, and the year-to-date return stands at 0.57%. The consistency is further echoed in the 1-year price total return, also at 0.93%.

With the previous close at $50.38, the stability in Pershing Square's stock price could be interpreted as investor confidence in the company's strategic direction and management. Additionally, the average daily volume over the last three months has been low, which might suggest a lower trading activity and potential steadiness in the shareholder base.

For investors looking for deeper insights, InvestingPro offers additional analysis and metrics on companies like Pershing Square Holdings. Subscribers can access these valuable resources to make more informed investment decisions. Currently, there are numerous additional InvestingPro Tips available for Pershing Square Holdings, which could provide further guidance on the stock's performance and potential. To benefit from these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.