Pershing Square’s manager pulls in $1bn of external money

There was an announcement from Pershing Square Holdings yesterday saying that its manager Pershing Square Capital Management, L.P is now 100% owned by a new limited partnership and that 10% of that limited partnership had been sold to external investors for $1.05bn. The largest shareholder of the new LP is Bill Ackman.

The consortium of new investors includes Arch Capital Group Ltd., BTG Pactual, Consulta Limited, ICONIQ Investment Management, Menora Mivtachim Holdings, an international group of family offices, and other investors.

The limited partnership has a new independent board of directors consisting of five independent directors and four affiliates of Pershing Square Capital Management, L.P. The independent directors are Kerry Murphy Healey, president emerita of Babson College; Orion Hindawi, executive chairman of Tanium; Marco Kheirallah, partner at Lumina Capital; Nicholas Lamotte, executive chairman of Consulta; and Christine Todd, chief investment officer of Arch Capital Group. The affiliate directors are Bill Ackman, chairman and CEO; Ryan Israel, CIO; Nick Botta, vice chairman; and Halit Coussin, chief legal officer.

There’s no mention of what the plan is for the $1.05bn of extra cash – maybe it went to the other investors in the new LP.

For Pershing Square Holdings there probably is not much of an impact but we wonder whether this is not the prelude to the launch of the new US-listed closed end fund – Pershing Square USA Ltd – that we have talked about before. The target is said to be to raise $25bn for that fund.

PSH : Pershing Square’s manager pulls in $1bn of external money