Exclusive: Pershing Square in talks with Bill Ackman to fund Universal Music

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Exclusive: Pershing Square in talks with Bill Ackman to fund Universal Music

- Pershing Square Capital Management LP is in discussions with Bill Ackman to raise $1 billion to help fund his bet on Vivendi SE's Universal Music Group, according to people with knowledge of the matter.

The firm has said that it would raise the capital, which would supplement $3 billion of its own capital in a so-called sidecar vehicle, via the people said. It would represent Pershing's seventh co-investment vehicle and to facilitate the purchase of a 10% stake in UMG, one of the people said.

The hedge fund last month abandoned the share purchase agreement from Pershing Square Tontine Holdings Ltd. after a special purpose acquisition company assumed the transaction amid opposition from investors and U.S. regulators.

The original deal called for UMG's blank-check company to acquire a 10% stake in Ackman's new company, UMG, the home of artists including Taylor Swift, Drake and Billie Eilish. When that deal fell apart, Ackman said his hedge fund had committed to acquiring a stake in the company 5% to 10%.

Pershing has previously employed co-investment vehicles for bets on firms such as Automatic Data Processing Inc. or ADP, its earnings transcripts show.