FYI: When Pershing Square CEO Bill Ackman sold out of his investment in ADP last month, he crystalized his first performance fee in years.
No matter what happens in the market — or the rest of its portfolio — Pershing Square will be pocketing a $60 million performance fee this year from the co-investment fund he raised to invest in ADP, according to Institutional Investor’s calculations. It will be the first year since 2014 that the firm is guaranteed to earn a performance fee.
Pershing Square, which announced the exit from ADP on Monday, also pocketed $1.2 billion in stock gains on the two-year investment, which was held in both the co-investment vehicle and Pershing Square’s hedge funds, according to an individual familiar with the matter.
The ADP gains were hard won, and a testament to Ackman’s conviction as an activist investor, said Ken Squire, the founder of 13DMonitor, which tracks activist investments.
Regards,
Ted
https://www.institutionalinvestor.com/article/b1gly163ps3bn4/How-Bill-Ackman-Turned-a-Lost-Proxy-Battle-Into-1-2-Billion-And-Earned-His-First-Performance-Fees-in-Years
