Billionaire hedge fund manager Bill Ackman’s new closed-end fund, Pershing Square USA, is expected to raise $5 billion in a combined initial public offering, sources told Reuters on Monday. The offering, including alternative asset manager Pershing Square Inc, is set to be one of the largest IPOs in years and the biggest-ever for a closed-end fund. Shares in Pershing Square USA (PSUS) were offered at $50 each and are expected to commence trading on Wednesday under the symbol PSUS, alongside Pershing Square Inc, trading as PS.
Pershing Square Inc, an alternative asset management company, manages investment funds, including the hedge fund Pershing Square Capital Management, founded by Mr. Ackman. The offering, initially targeting $5-10 billion, settled at $5 billion, significantly oversubscribed with over 85% of orders from institutional investors. Of the $5 billion raise, $2.8 billion comes from cornerstone investors, whose investments are locked up for six months. These cornerstone investors receive 1.5 shares in Pershing Square Inc for every five shares purchased in the new fund; other investors receive one share for every five shares. Final orders were due Monday.
Investor interest underscores Bill Ackman’s enduring appeal, 22 years after establishing his hedge fund. Ackman cemented his reputation through activist campaigns targeting companies. Investors are also keen on the track record of Pershing Square Holdings, a London-listed closed-end fund, which has delivered returns of 380.4% over the last decade and 52.1% over the past five years. This successful debut follows Ackman’s prior attempt in 2024 to launch Pershing Square USA, which was withdrawn due to muted demand. The combined offering is being led by Citigroup Inc, UBS Group AG, Bank of America Corp, Jefferies Financial Group Inc, and Wells Fargo & Co.
