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The firm plans to soon announce that Fraidin will join its New
York office as a partner, Cadwalader's managing partner, Pat
Quinn, told Reuters.
Fraidin, 78, joined Ackman's Pershing Square Capital Management
as vice chairman three years ago after working for five decades
as a Wall Street lawyer.
He arrived at the hedge fund soon after Ackman teamed up with
pharmaceutical company Valeant as it sought to buy Botox-maker
Allergan when the investor looked ready to structure more deals
that require intense in-house legal supervision. Pershing
Square's later investment in Valeant failed, contributing to a
string of losses and reduced deal-making appetite.
Fraidin is leaving the activist hedge fund which generally makes
only about a dozen long-term investments, for a law firm that
has been in business since George Washington was the U.S.
president, and now frequently works for Ackman's $8 billion
hedge fund.
"This is an opportunity to return to helping clients deal with
challenging corporate governance and mergers and acquisitions
situations, and I think it is a good move for me," Fraidin told
Reuters.
At Cadwalader Fraidin he will reunite with Richard Brand,
co-chairman of the firm's corporate group, who often handles
legal matters for Pershing Square. The two men had worked
together at Kirkland & Ellis. Before that, Fraidin was a partner
at Fried, Frank, Harris, Shriver & Jacobson.
He returns to practicing merger law as dealmaking is off to a
strong start this year. But gradually rising interest rates,
concerns over U.S. trade policy, and worries about unfriendly
regulators have raised questions on Wall Street whether the
robust pace will continue.
During his career, Fraidin has advised prominent clients
including private equity firm 3G Capital Partners which teamed
up with Warren Buffett to buy H.J. Heinz Co for $28 billion in
2013. In 2014, he represented the London Stock Exchange Group in
its $2.7 billion acquisition of U.S. index compiler Frank
Russell Co.
Fraidin will keep ties to Pershing Square and remain on its
advisory board. Ackman, 52, who has known Fraidin since his
teenage years and calls him a mentor, said "I am looking forward
to working with Steve in his new role at Cadwalader."
(Reporting by Svea Herbst-Bayliss; Editing by Jeffrey Benkoe)
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