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Billionaire investor Bill Ackman's Pershing Square Capital Management announced on Monday the sale of a 10% common equity stake to a consortium of institutional investors and family offices for $1.05 billion, valuing the hedge fund at $10.5 billion.

Legal Counsel and Placement Agents

Pershing Square was represented by Sullivan & Cromwell LLP and Simpson Thacher & Bartlett LLP in this transaction. The placement agents — BofA Securities, Citigroup, Evolve, Jefferies, and UBS Investment Bank — were counseled by Skadden Arps Slate Meagher & Flom LLP.

Ackman's Pershing $1B Sale: The Consortium of Buyers

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

"We are delighted to invite a group of world-class, long-term partners as investors in our business, which has been entirely owned by Pershing Square employees since our inception more than 20 years ago," Ackman stated. "This new investment will help accelerate our growth in assets under management in existing and new strategies. As always, Pershing Square will remain intensely focused on generating high, long-term returns for our investors."

Board of Directors and Leadership Changes

Concurrent with the transaction, Pershing established a board of five independent directors alongside four affiliates from within the firm. The independent directors include:

• Kerry Murphy Healey, president emerita of Babson College
• Orion Hindawi, co-founder and executive chair of cybersecurity firm Tanium
• Marco Kheirallah, partner at Lumina Capital
• Nicholas Lamotte, executive chair of Consulta
• Christine Todd, chief investment officer of Arch Capital

The affiliate directors are Ackman (chair and CEO of Pershing), Ryan Israel (chief investment officer), Nick Botta (vice chair), and Halit Coussin (chief legal officer).

Ben Hakim has been named the new president of Pershing, taking over from Botta.

Ackman's Pershing $1B Sale: Internal Reorganization

As part of the transaction, Pershing Square is completing an internal reorganization to transfer ownership of its voting securities to an LLC controlled by senior management, retaining Ackman as the largest shareholder.

Legal Teams

The Simpson Thacher team representing Pershing includes capital markets partners Josh Bonnie and William Golden, regulatory partner David Blass, registered funds partner Ryan Brizek, fund transactions partner Ryan Williams, and tax partners Marcy Geller and Caroline Phillips.

The Skadden team representing the placement agents comprises investment management partner Kevin Hardy and capital markets partner Michael Schwartz.

Additional counsel information was not immediately available.