Howard Hughes Holdings has agreed to purchase all shares of Vantage Group Holdings, a non-public insurance coverage and reinsurance enterprise, for an estimated $2.1bn.
The acquisition is anticipated to shut within the second quarter of 2026, topic to required regulatory clearances.
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The settlement will see Vantage turn into an integral a part of Howard Hughes Holdings.
Vantage was established in 2020 and operates as a supplier of property and casualty (P&C) insurance coverage with numerous merchandise supported by superior know-how and analytics.
Its subsidiaries embody Vantage Danger, Vantage Danger Assurance Firm and Vantage Danger Specialty Insurance coverage Firm.
Vantage will preserve its present title and model, with employees persevering with of their present roles and groups.
Vantage CEO Greg Hendrick stated: “With Howard Hughes’ everlasting capital and long-term imaginative and prescient, we count on to strengthen our stability sheet and develop alternatives in specialty insurance coverage, reinsurance and partnership capital.
“After closing, we anticipate enhanced sources to gasoline worthwhile progress, drive innovation and ship even better worth to brokers and shoppers over time.”
The transaction can be funded utilizing Howard Hughes Holdings’ present money and as much as $1bn in non-interest-bearing, non-voting most well-liked inventory issued to Pershing Sq. Holdings, known as PSH Most well-liked.
This most well-liked inventory can be issued in 14 equal components, every of which Howard Hughes can purchase again yearly throughout the first seven years after the transaction closes.
Including insurance coverage actions is meant to broaden Howard Hughes Holdings’ long-term income streams.
With its new construction, the corporate goals to offer sustained monetary assist to Vantage, probably enhancing its credit score standing and providing flexibility in underwriting.
Pershing Sq. will oversee Vantage’s funding property with out charging administration or advisory charges for this position.
Howard Hughes govt chairman Invoice Ackman commented: “In Vantage, HHH obtains an distinctive diversified specialty insurance coverage and reinsurance platform managed by a superb and extremely skilled crew.
“The mix of Vantage’s insurance coverage experience and Pershing Sq.’s funding capabilities creates the chance to construct a big, extremely worthwhile insurance coverage firm and an necessary supply of long-term worth creation for Howard Hughes.”
In October, FGH Mum or dad, its unit Fortitude Re, and Carlyle started a brand new reinsurance sidecar named Fortitude Carlyle Asia Reinsurance.
