Billionaire's Empire Under Fire: Activist Investor Demands Change at Cannae

In the high-stakes world of corporate governance, few names carry as much weight as Bill Foley. The billionaire investor and sports owner has built an empire through his holding company, Cannae Holdings, which includes stakes in everything from European soccer teams to money-losing restaurant chains. But now, Foley's empire is under fire from activist investor Dan Gropper, who claims that Cannae's "vague and undifferentiated" approach to acquisitions and "egregious governance practices" have cost shareholders nearly $1 billion.

Gropper, the founder of Carronade Capital Management, has been engaged in private discussions with Cannae's management about reforming its corporate strategy and governance. In December, Carronade notified Cannae privately that it intended to nominate four independent directors to the company's board at Cannae's 2025 annual meeting. The dispute went public on March 22, 2025, with Carronade publishing a scathing letter accusing Cannae's board of accelerating equity vesting for existing board members if they aren't reelected, and requiring the repurchase of half of Foley's shares "at a significant premium to market prices."

The move, taken by Cannae's board on March 14 and made public in a March 17 regulatory filing, "trounces shareholder rights" and "makes clear to us that Cannae has not been engaging in good faith dialogue despite our persistent and sincere efforts," Carronade said in a letter made public in a press release.

Gropper claims that despite a handful of successful investments in the past, the current portfolio of private investments is consistently marked at cost and the remaining investments in public equities have destroyed approximately $900 million of value. He argues that a lack of strategic cohesion among investments and limited portfolio company disclosure weigh on investor confidence. "There has been no clear investment narrative for shareholders to rally behind, as we consistently hear Cannae described simply as the Bill Foley co-investment vehicle," Gropper stated.

Cannae, however, has responded by outlining steps it's taken to reduce management expenses and to better align the interests of key executives with those of shareholders by shifting compensation "primarily to Cannae stock." The company's strategic plan, which it has already begun implementing, "will deliver better long-term returns to our shareholders than the actions proposed by Carronade Capital," Cannae said.

Foley, who founded title insurance giant Fidelity National Financial (FNF) in 1984 and continues to serve as the chairman of the company's board, is Cannae's CEO, chief investment officer, and chairman of the board. Cannae was split off from FNF in 2017, with FNF contributing a portfolio of companies unrelated to its primary insurance and real estate operations. FNF remains the largest of the nation’s “big four” title insurers, generating $1.3 billion in profits last year. FNF also owns a stable of real estate technology companies, and companies that provide services to mortgage lenders and real estate professionals.

The proposed changes by Carronade Capital Management could significantly impact the valuation and performance of Cannae's private holdings, such as European soccer teams and other investments. By divesting from public equities, Cannae could concentrate more resources and management attention on its private holdings. This could lead to better performance and higher valuations for these assets. For instance, Cannae's stake in AFC Bournemouth, an English Premier League soccer team, could benefit from increased investment and strategic focus. Foley and Jordan plan to grow Bournemouth’s commercial and business operations, construct a new training center for players, and improve or redevelop the south-coast club’s home ground. This kind of focused investment could enhance the team's performance and commercial value.

In summary, the proposed changes by Carronade Capital Management could lead to increased focus, higher valuations, strategic cohesion, and risk mitigation for Cannae's private holdings. These factors could collectively enhance the performance and valuation of assets like AFC Bournemouth and other private investments. The battle for Cannae's future is far from over, but one thing is clear: Bill Foley's empire is under siege, and the outcome will have far-reaching implications for shareholders and the broader investment community.