By Apratim Sarkar Dec 18 (Reuters) – Bill Ackman-backed Howard Hughes Holdings said on Thursday it will buy specialty insurance firm Vantage Group Holdings for about $2.1 billion, as the real estate firm diversifies beyond property development. Howard Hughes will fund the deal with cash and up to a $1 billion loan from hedge fund […]
Business
Ackman-backed Howard Hughes to buy insurer Vantage for $2.1 billion
Audio By Carbonatix
By Apratim Sarkar
Dec 18 (Reuters) – Bill Ackman-backed Howard Hughes Holdings said on Thursday it will buy specialty insurance firm Vantage Group Holdings for about $2.1 billion, as the real estate firm diversifies beyond property development.
Howard Hughes will fund the deal with cash and up to a $1 billion loan from hedge fund Pershing Square, which is also backed by activist investor Ackman, in the form of preferred shares in Vantage.
The real estate company said it could buy the stock back from Pershing Square over seven years at a premium tied to Vantage’s book value.
Howard Hughes is best known for its master-planned communities in places including Texas, Hawaii and Nevada.
But it has since shifted its focus toward buying controlling stakes in smaller businesses in other sectors, part of executive chair Ackman’s broader effort to build a diversified holding company modeled after Berkshire Hathaway.
“We’re following a playbook that worked for Berkshire Hathaway – starting with a core business and adding insurance to create a platform for long-term capital compounding,” Ackman said in a statement.
Bermuda-based Vantage Group uses technology and data analytics to underwrite and provide commercial property and casualty insurance products through its subsidiaries.
Ackman said Howard Hughes will use excess cash from real estate, including $4 billion in condominium sales, to buy back Pershing Square’s preferred stock before reinvesting in Vantage.
In May, Ackman had raised his stake in Howard Hughes to 46.9% from 37.6%, with a $900 million investment.
The deal for Vantage, backed by private equity firms Carlyle and Hellman & Friedman, is expected to close in the second quarter of 2026.
J.P. Morgan Securities is advising Vantage, with Debevoise & Plimpton as legal counsel, while Jefferies is advising Howard Hughes.
Shares of the Woodlands, Texas-based Howard were up 3.2% on Thursday.
(Reporting by Apratim Sarkar; Editing by Krishna Chandra Eluri and Sahal Muhammed)