In a significant move ahead of its anticipated initial public offering, Bill Ackman’s Pershing Square Capital Management has announced the sale of a 10% stake in the management company for $1.05 billion. The legal maneuvering for this transaction was undertaken by prominent M&A law firms, Sullivan & Cromwell and Simpson Thacher & Bartlett. Investors participating in the deal include Arch Capital Group Ltd., BTG Pactual, Consulta Ltd., ICONIQ Investment Management, and Israeli insurance company Menora Mivtachim Holdings, collectively bringing the company’s valuation to over $10 billion.
The transaction is a strategic step as Pershing Square prepares for a planned IPO in the U.S., potentially as soon as 2025. Sullivan & Cromwell’s team, known for their expertise in capital markets, worked closely with Simpson Thacher, whose team was led by Josh Bonnie, co-head of the firm’s global capital markets practice. Sullivan & Cromwell also brought in capital markets partner William Golden and regulatory partner David Blass, among others, to handle various aspects of the complex transaction.
Besides guiding Pershing Square through the sale, notable partners from these firms have also been involved in advising heavyweights like the Carlyle Group and Blackstone on various matters, including corporate conversions and IPOs. Simpson Thacher’s Golden, for instance, has steered multiple IPOs, such as Bumble’s $2.5 billion offering.
Skadden, Arps, Slate, Meagher & Flom also played a crucial role, advising U.S. placement agents on the transaction. Their team was led by investment management partner Kevin Hardy and capital markets partner Michael Schwartz.
For a detailed account of the transaction and insights into the legal teams involved, further information can be found here.