Vantage Partnership Capital (AdVantage) drives $15m income for Howard Hughes in Q3 2026

Vantage Risk’s third-party reinsurance capital and investments platform has again delivered higher fee income to the benefit of its now owner, Bill Ackman linked Howard Hughes Holdings, with $13 million of fee income generated by its insurance-linked securities style partnerships with investors in Q3 2026 and $15 million of total net income from the ILS activities.

It takes year-to-date fee income earned by the Vantage Partnership Capital team, operating its business through the AdVantage platform of companies, to $47 million.

The third-quarter 2026 net fee income from the ILS and reinsurance investment operations of $13 million is up $4 million on the prior-year period, as seemingly the AdVantage strategies have benefited from the relatively benign environment for major catastrophe losses.

In the prior quarter, Vantage’s third-party reinsurance capital platform generated $23 million of fee income from its ILS style partnerships with investors in the second-quarter of 2026.

For the 2026 calendar year, the Vantage Partnership Capital business, operating through the AdVantage structures, has a higher $1.6 billion of capital to deploy than it did in 2025.

Fee income is now running higher, through both second and third quarters in 2026, but as well as the additional capital under management, the AdVantage structures have also been benefiting from variable fee income inputs.

At $47 million of net fee income for the first nine months of 2026, it’s a meaningful increase from the -$5 million that fee income sat at after 9-month 2025 (presumably due to catastrophe loss events such as the Los Angeles wildfires earlier that year).

Howard Hughes Holding stated that Q3 2026 fee income for AdVantage was, “resulting from the continued positive outcomes for recent property catastrophe business written in this structure.”

Marc Grandisson, the former Arch Capital CEO who joined the Howard Hughes Holdings Board of Directors this year, commented during an earnings call today, “Net fee income was $13 million in the quarter, up from $9 million, and is $47 million year to date, versus the loss last year.

“This comes from our AdVantage ILS structure and reflects strong outcomes on recent property cat business we wrote for third-party partners.”

Vantage Risk itself reported no catastrophe losses for the third-quarter and $4 million of favorable prior-year development, which may be a factor in higher variable fee income flowing to AdVantage in the period, although we cannot be certain as the reason for the variability was not disclosed.

On top of the fee income from the ILS business, Howard Hughes Holdings also reported $4 million of underwriting income from the AdVantage strategies in Q3 2026, taking total pre-tax income to $17 million and net income to $15 million after $2 million of earnings for non-controlling interests (presumably capital providers).

The AdVantage ILS related activities deliver an asset-light stream of fee income for Howard Hughes, while also increasing Vantage’s underwriting capacity at the same time and enabling it to optimise its portfolios, with the help of third-party capital investors.

Recall that when Howard Hughes Holdings announced its acquisition of Vantage Risk, its senior executives explained that AdVantage and the Vantage Partnership Capital business delivers an attractive “high-margin, asset-light fee stream.”

Bill Ackman himself said on the ILS operation, that it is appealing because it is “an asset management business, you have third-party capital, and you get a management fee and a piece of the upside.”