Howard Hughes (US:HHH)2025-12-18 13:30Transaction Overview - HHH will acquire Vantage from Carlyle and Hellman & Friedman for $2.1 billion in cash[5] - The purchase price represents 1.5x estimated year-end 2025 book value and is expected to represent a ~1.4x P / BV multiple at close[5] - The deal is expected to close in Q2 2026, subject to regulatory approvals[5] Vantage's Financial Performance - Vantage has $1.2 billion in net premiums written over the last 12 months as of September 30, 2025, with ~60% from Specialty Insurance and ~40% from Reinsurance[7] - Vantage's book value was $1.3 billion as of September 30, 2025[7] - Net Written Premium is $1.17 billion, which is 73% of Gross Written Premium[13] - Vantage's investment portfolio has 90% allocated to Fixed Income and 10% to Cash & Cash Equivalents[15] - The Pre-Tax Return on Equity is 13%[13] Strategic Benefits for HHH - Pershing Square Holdings ("PSH") will provide up to $1 billion backstop investment in the form of non-interest-bearing preferred stock issued by HHH[5] - Pershing Square will manage Vantage's investment portfolio for no additional fees, a typical market-rate fee structure for an external investment manager of a common-stock-based portfolio would be a 1% - 2% management fee and a 10% - 20% performance fee on profits[28, 30] - Pershing Square's investment strategy has delivered strong performance since inception, with a 10.7% annualized total shareholder return including dividends from January 2004 to current[32]