Vantage Group sold for $2.1bn in all-cash deal
Vantage Risk, the Bermudian specialty insurer and reinsurer, is being bought by Howard Hughes Holdings in an all-cash transaction valued at approximately $2.1 billion.
Howard Hughes, a US company, has entered into a definitive agreement to acquire 100 per cent of privately held Vantage Group Holdings, which is backed by Carlyle and Hellman & Friedman.
Vantage is expected to continue to operate as a standalone company and will retain its name and branding.
The acquisition is expected to provide Vantage with permanent capital and long-term stability while preserving the leadership team, operational independence and a disciplined approach to underwriting, the companies said.
Vantage said there are no planned expense synergies, and operations, service standards, and client commitments would remain unchanged.
Pershing Square will manage Vantage’s investment portfolio on a fee-free basis.
Once the transaction closes, Vantage expects an injection of additional capital and an enhanced investment strategy with an allocation to Pershing Square’s long-term approach.
The transaction is expected to close in the second quarter of 2026, subject to customary regulatory approvals.
Upon closing, Vantage will anchor Howard Hughes’ transformation into a diversified holding company, according to a statement from HHH.
As a result of joining Howard Hughes, Vantage expects to accelerate innovation, strengthen the balance sheet, and continue delivering exceptional value to brokers and clients, Vantage said.
“The acquisition of Vantage is a milestone event in the transformation of Howard Hughes into a diversified holding company,” said well-known hedge fund manager Bill Ackman, executive chairman of Howard Hughes and the founder of hedge fund Pershing Square.
“In Vantage, HHH obtains an exceptional diversified specialty insurance and reinsurance platform managed by an excellent and highly experienced team.
“The combination of Vantage’s insurance expertise and Pershing Square’s investment capabilities creates the opportunity to build a large, highly profitable insurance company and an important source of long-term value creation for Howard Hughes.”
The addition of a higher-return, faster-growing insurance operation accelerates HHH’s overall growth profile and increases and diversifies HHH’s sources of long-term value.
HHH’s holding-company ownership of Vantage provides long-term capital support which will materially strengthen Vantage’s credit profile and underwriting flexibility.
An emphasis on underwriting profitability — driven by disciplined risk selection, pricing, and portfolio optimisation rather than growth — will improve Vantage’s ability to effectively navigate the insurance cycle and optimise asset allocation over time.
Pershing Square will manage Vantage’s assets on a fee-free basis, enhancing investment returns and furthering alignment with policyholders and shareholders.
Summary of Key Terms:
Total cash consideration of approximately $2.1 billion represents 1.5 times estimated year-end 2025 book value and an implied ~1.4 times price-to-book-value multiple at closing. HHH through its ownership of Vantage will retain any book value accretion at Vantage from signing until closing.
The transaction will be funded with approximately $1.2 billion of cash on HHH’s balance sheet and up to $1.0 billion from PSH in the form of non-interest-bearing preferred stock issued by HHH convertible into the common equity of Vantage.
HHH will receive a series of call options enabling it to redeem the PSH Preferred and acquire additional economic ownership of Vantage over the next, up to, seven years.
It is expected that HHH will fully redeem the PSH Preferred and acquire a 100 per cent economic interest in Vantage well within the initial seven-year term of the preferred.
In the event that HHH does not fully redeem the PSH Preferred, PSH has the right to cause a public listing of Vantage.
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