Carl Icahn, the US activist investor, yesterday struck an $810m deal to take his investment funds public by folding them into American Real Estate Partners, a listed real estate partnership he controls.

The transaction will consolidate Icahn’s holdings into one entity, which will be renamed Icahn Enterprises.

AREP will acquire Icahn’s funds, which have about $7bn in assets under management, for $810m of the real estate partnership’s depositary units. AREP said in a statement that there could also be an additional payment of up to $1.1bn if the Icahn funds post net after-tax earnings of $3.9bn from 2007 to 2011.