Bermudian-based Arch Capital Group is among a consortium of strategic investors that have purchased a ten per cent common equity interest in Pershing Square Holdco LP for $1.05 billion.

The newly formed limited partnership owns 100 per cent of Pershing Square Capital Management LP, the New York-based, SEC-registered investment adviser to investment funds.

Other investors in the deal include Latin American investment bank BTG Pactual, London-based private investment firm Consulta Ltd, San Francisco-headquartered Iconiq Investment Management, Israel-based Menora Mivtachim Holdings, an international group of family offices, and other investors.

“We are delighted to invite a group of world-class, long-term partners as investors in our business, which has been entirely owned by Pershing Square employees since our inception more than 20 years ago,” said Pershing Square founder and chief executive officer Bill Ackman.

“This new investment will help accelerate our growth in assets under management in existing and new strategies. As always, Pershing Square will remain intensely focused on generating high, long-term returns for our investors.”

Concurrent with the closing of the minority investment, Pershing Square has established an independent board of directors consisting of five independent directors and four affiliates of PSCM.

The independent directors are Kerry Murphy Healey, president emerita of Babson College; Orion Hindawi, executive chairman of Tanium; Marco Kheirallah, partner at Lumina Capital; Nicholas Lamotte, executive chairman of Consulta; and Christine Todd, chief investment officer of Arch Capital Group.

The affiliate directors are Bill Ackman, chairman and CEO; Ryan Israel, CIO; Nick Botta, vice-chairman; and Halit Coussin, chief legal officer.

In connection with the transaction, PSCM said, it is completing an internal reorganisation of its ownership structure which will result in the voting securities of Pershing Square being indirectly owned by a limited liability company, an entity which will be controlled by senior management of Pershing Square including Bill Ackman who is the largest shareholder of the LLC.

Ben Hakim has been appointed as president of PSCM in addition to his continuing role as a member of the investment team.

Nick Botta will become vice-chairman of PSCM and join the Pershing Square board. He previously served as president of PSCM.