Bill Ackman's Pershing Square sells 10% stake to raise $1.05 bln (updated)

Arch Capital

03/06/2024 12:17

(Adds details on investors in paragraph 3, Ackman comment in
paragraph 4)
       June 3 (Reuters) - Billionaire Bill Ackman's Pershing
Square Capital Management has raised $1.05 billion by selling
10% stake in the hedge fund to a consortium of institutional
investors and family offices, it said on Monday.
    The sale is a precursor to a potential initial public
offering that could happen next year or in 2026. Investors are
valuing the firm at $10.5 billion, Reuters reported last week. 
    Investment firm ICONIQ, specialty insurer Arch Capital Group
 ACGL.O , investment bank BTG Pactual, Israeli insurer Menora
Mivtachim, investment manager Consulta and an international
group of family offices took part in the fundng.
    "This new investment will help accelerate our growth in
assets under management in existing and new strategies," CEO
Ackman said.
    About $500 million of the money raised will anchor Ackman's
new investment portfolio in the United States, which will be
listed on the New York Stock Exchange.     
    BofA Securities, Citigroup, Evolve, Jefferies, and UBS
Investment Bank were the placement agents for the funding round.

 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by
Shilpi Majumdar)
 ((ArasuKannagi.Basil@thomsonreuters.com;))