Billionaire investor Bill Ackman’s Pershing Square has filed for U.S. initial public offerings of both his hedge fund and a new fund, potentially joining a select group of publicly traded alternative asset managers. This move represents a significant milestone for Ackman, the activist investor known for advocating changes in companies such as Chipotle Mexican Grill and Canadian Pacific. Pershing Square had previously attempted to take the new fund, Pershing Square USA, public in 2024, but the launch was scrapped shortly before its debut.
Pershing Square USA aims to raise between $5 billion and $10 billion through its IPO and a concurrent private placement, offering shares at $50 apiece. To incentivise investors, the fund is providing 20 shares of Pershing Square for every 100 shares purchased in the new fund. The fund has already secured $2.8 billion in commitments via private placement from entities including family offices, pension funds, and insurance companies, who will receive 30 Pershing Square shares for every 100 Pershing Square USA shares purchased.
According to Troy Hooper from Mergermarket, the structure might be too convoluted for retail investors, as the closed-end fund does not allow share redemptions for underlying assets. He also notes that Ackman’s public persona and political commentary introduce an additional layer of risk for investors. Pershing Square USA plans to mirror Ackman’s existing hedge fund, investing in 12 to 15 undervalued North American-listed companies. The fund, which aims to offer quicker capital access without performance fees, will list on the New York Stock Exchange under the symbol “PSUS”.
Pershing Square Capital Management is a global investment firm that manages portfolios concentrated in large capitalisation companies. Pershing Square Holdings, its London-listed closed-end fund, had approximately $30.7 billion in assets under management at the end of December. Citigroup, UBS Investment Bank, BofA Securities, Jefferies and Wells Fargo Securities are the global coordinators and bookrunners for the combined offering, and Pershing Square will list on the New York Stock Exchange under the symbol “PS”.
