(Bloomberg) - Pershing Square Inc. filed for an initial public offering, in a deal that would see billionaire Bill Ackman’s hedge fund make its debut on a US exchange alongside a new closed-end fund.
The combined initial public offering includes a stake in Pershing Square USA Ltd., a closed-end fund, and Ackman’s Pershing Square Capital Management, the filings show. For every 100 shares of the closed-end fund IPO purchased by a buyer, that investor will receive 20 shares in the hedge fund management company, the filing shows.
Ackman is looking to raise between $5 billion and $10 billion for Pershing Square USA in the combined deal, with investors able to buy shares in the closed-end fund at $50 apiece.
Part of the funds will be raised from a private placement, with $2.8 billion secured from qualified investors including family offices, pension funds and insurances companies, the filing shows. The investors in the private placement will receive 30 shares in the management company for every 100 closed-end fund shares purchased.
Pershing Square expects the two companies to trade independently once the IPO is priced.
The filing marks the latest move in Ackman’s long campaign to pivot toward a long-term investment strategy inspired by Warren Buffett’s Berkshire Hathaway Inc. After a plan to raise as much as $25 billion for a New York Stock Exchange-listed closed-end fund floundered in 2024, Pershing Square pivoted to boosting its Howard Hughes Holdings Inc. stake a few months later to use as a vehicle for taking majority stakes in other firms.
In 2024, Ackman agreed to sell a 10% stake in Pershing in a private deal that valued it at more than $10 billion ahead of the planned IPO. The alternative asset manager has roughly $30.7 billion in total assets under management with $20.7 billion of that in fee-paying assets as of the end of 2025, the Tuesday filing shows.
Pershing Square Holdings Ltd., the firm’s London-listed closed-end fund, had $17.1 billion of assets under management at the end of February. The fund is similar to many other closed-end funds in that it trades below its net asset value, data compiled by Bloomberg show. The mid-price is currently 24% below the NAV, the data show.
The combined offering is being led by Citigroup Inc., UBS Group AG, Bank of America Corp., Jefferies Financial Group Inc., and Wells Fargo & Co. The closed-end fund will be listed on the New York Stock Exchange under the symbol PSUS while the hedge fund is expected to trade under the ticker PS.
By Bailey Lipschultz
With assistance from Katherine Burton
