Bill Ackman invests $900 million for control of Howard Hughes

On May 5, 2025, in the United States, billionaire hedge fund manager Bill Ackman's investment firm, Pershing Square, announced a significant investment in Howard Hughes, a real estate company. This investment totals $900 million, as Pershing Square has agreed to purchase 9 million newly issued shares. The price per share is 48% higher than the closing price from the previous Friday, consequently elevating Pershing Square's ownership stake in the company to 46.9%. Following this deal, Howard Hughes' shares surged by 8% during premarket trading. In conjunction with the financial deal, Bill Ackman will assume the role of executive chairman of Howard Hughes' board, while Ryan Israel, the chief investment officer of Pershing Square, will also take on a similar title at Howard Hughes. This strategic move aligns with Ackman's aim to transform Howard Hughes into a business model akin to a "modern-day Berkshire Hathaway," referring to Warren Buffett's expansive and successful conglomerate which has become a benchmark for diversified investment. Furthermore, Howard Hughes is set to pay Pershing Square a quarterly base fee of $3.75 million, along with a variable management fee based on the real estate company’s market capitalization changes. As part of this investment, Pershing Square has also pledged to restrict its voting power in Howard Hughes to 40%, highlighting a structured approach to governance in relation to their substantial financial contribution. This major investment in Howard Hughes not only demonstrates Bill Ackman's confidence in the company’s potential for growth but also reflects a broader trend of established investors seeking to exert influence over their portfolio companies’ direction. As Ackman ventures to mold Howard Hughes into a powerhouse similar to Berkshire Hathaway, market analysts will be closely observing the implications this acquisition has for both companies in the real estate sector.