Luciana “Lucy” Fato, the former top lawyer at American International Group Inc. (AIG), has taken on a new role as the general counsel at Seaport Entertainment Group Inc., a newly-spunoff company backed by billionaire investor Bill Ackman. This transition marks another significant move in Fato’s impressive legal career.
Seaport Entertainment Group, a diverse enterprise that includes properties such as the recently redeveloped South Street Seaport in New York City and the Las Vegas Aviators baseball team, recently separated from Howard Hughes Holdings Inc. Ackman, who holds a nearly 40% stake in both companies, reportedly played a pivotal role in recommending Fato for her current position.
Fato’s decision to join Seaport came shortly after she ended her tenure as AIG’s vice chair on March 31. During her time at AIG, she was not only the highest-paid legal chief but also managed the company’s legal and government affairs for six years. Notably, she still holds $13.4 million in AIG stock. Her legal career also includes roles such as general counsel for S&P Global Inc. and deputy general counsel at Marsh & McLennan Cos. Inc.
The general counsel’s agreement with Seaport, effective from Aug. 1, included a restricted stock award valued at $212,500. You can access more details about the agreement here.
Ackman, who has a history of significant investments in the real estate sector, initially invested in Howard Hughes more than ten years ago. His hedge fund, Pershing Square Capital Management LP, has since increased its stake in the company and is reportedly considering taking it private. Earlier this year, Ackman withdrew an initial public offering for a US closed-end fund, a decision that could have significant implications for the hedge fund’s legal expenses.
Prominent law firms played key roles in this corporate maneuvering. Latham & Watkins represented Howard Hughes and Seaport in their split, while Sidley Austin counseled Wells Fargo as the deal manager. Additionally, Richards, Layton & Finger provided advisory services to Howard Hughes’s board. Earlier this year, Howard Hughes appointed Joseph Valane as its new general counsel, following his tenure with Blackstone Inc.’s Revantage real estate business.
To read the full article, click here.