Bill Ackman Begins Marketing Pershing Square IPO, Touts ‘Extraordinary Economic Characteristics’ As He Looks To Raise Up To $10B

• Pershing Square stated in its filing that the offering will take a dual listing approach.
• This includes the shares of Pershing Square USA, a closed-end fund, as well as Pershing Square Inc., the hedge fund and the prospective parent company of Pershing Square Capital Management.
• For every 100 shares of the closed-end fund subscribed by investors, they will also receive 20 shares of the hedge fund.

Bill Ackman has kicked off marketing for the initial public offering of his hedge fund and closed-end fund, adopting a dual-listing approach and expecting to raise between $5 billion and $10 billion.

The combined IPO will result in two companies being taken public. This includes Pershing Square Inc. (PS), the prospective parent company of Pershing Square Capital Management, and a closed-end fund, Pershing Square USA (PSUS).

In its filing with the U.S. Securities and Exchange Commission (SEC), Pershing Square stated that it has already secured $2.8 billion in commitments ahead of the IPO.

Ackman Touts ‘Extraordinary Economic Characteristics’

In a letter to shareholders, the billionaire investor touted “extraordinary economic characteristics” of Pershing Square as he sought to explain the fund’s long-term goal.

“Our long-term goal for Pershing Square Inc. is to build one of the most valuable companies in the world by generating one of the best long-term performance records of any investor ever,” Ackman said.

He added that, with permanent capital, Pershing Square has the ideal structure to pursue its investment strategy, which involves acquiring and long-term owning what the company considers some of the greatest businesses and long-term compounders of shareholder value.

Ackman also explained that PSI can be considered a “meta” company, earning long-term fees from funds invested in high-quality businesses. He said that Pershing Square’s focus on liquid, large-cap stocks allows it to adjust positions easily and stay invested without pressure from investor flows.

What Will Investors Get?

Investors who subscribe to shares of Pershing Square USA will also receive shares of the hedge fund, Pershing Square Inc. According to the SEC filing, investors who buy 100 shares of the closed-end fund PSUS will also receive 20 shares of the hedge fund, PSI.

The closed-end fund’s shares are priced at $50 apiece, and the shares they will receive in the hedge fund will come at no extra cost.

Investors participating in the $2.8 billion private placement will receive 30 shares of the hedge fund for every 100 shares of the closed-end fund, according to the filing.

Nearly Two-Year Delay

Ackman had previously sought to take Pershing Square public in 2024, at a valuation of up to $25 billion. However, he shelved the plans, citing “enormous” sensitivity to the transaction size, in a letter to shareholders in July 2024.

Pershing Square has about $30.7 billion in assets under management. The company stated that its closed-end fund, PSUS, will charge a 2% management fee but not a performance fee.

PSHZF stock was flat in Monday’s pre-market trade. The Renaissance IPO ETF (IPO) is up 26% over the past 12 months.

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