Bill Ackman is making a return to the initial public offering (IPO) market with a combined offering involving his hedge fund manager and a newly established closed-end fund. This move represents the latest step in Ackman’s ongoing strategy to extend his asset management reach to investors within the public market.
According to filings with the U.S. Securities and Exchange Commission, the IPO for Pershing Square USA Ltd, the closed-end fund, will give investors stakes in Pershing Square Inc, his alternative asset management firm. The structure of the deal ensures that for every 100 shares of the closed-end fund IPO an investor purchases, they will receive 20 shares in the management company, as detailed in the filing.
Ackman aims to raise between $US5 billion and $US10 billion for Pershing Square USA through this combined deal. Investors who purchase shares in the closed-end fund at $US50 apiece will receive shares in the management firm at no additional cost. Pershing Square is an alternative asset management firm that makes concentrated investments in North American companies. Pershing Square aims to maximise long-term capital appreciation for its investors.
This offering marks a renewed effort by Ackman to introduce his long-term investment approach to a wider investor audience, drawing inspiration from Warren Buffett’s Berkshire Hathaway model.
