Bill Ackman may raise half as much as desired for his fund's IPO - Bloomberg
Ackman's IPO fund could raise investment half as much as the investor himself sought to raise / Photo: hls.harvard.edu / Tracy Tolf
The initial public offering of Bill Ackman's Pershing Square USA closed-end fund and his alternative asset management company Pershing Square Inc. is expected to raise only $5 billion - half as much as the billionaire himself sought to raise, according to Bloomberg sources. That amount, they said, includes a $2.8 billion private placement disclosed in filings with the U.S. Securities and Exchange Commission.
The IPO is covered by bids of institutional investors by about 85%, the agency sources said. Acceptance of bids for the deal is expected to close on Monday, and the offering price will be determined on April 28. A Pershing Square spokesman declined to comment.
Following the IPO, the fund will trade on the New York Stock Exchange under the ticker PSUS and the management company will trade under the ticker PS. Pershing Square USA will charge a 2% asset management fee and will not charge a performance fee.
The IPO will help Ekman create a more stable capital base for its funds, allowing it not to worry that investors will suddenly withdraw their money, Bloomberg writes. The closed-end fund structure does not allow for redemption of units by investors and, unlike a mutual fund, does not involve the permanent issuance or redemption of shares, so their market price can be traded at a premium or discount to the value of the underlying assets.
Ackman had already tried to raise up to $25 billion for a closed-end fund with a listing on the New York Stock Exchange in 2024, but his plan failed due to lack of demand, Bloomberg recalls, The billionaire first lowered the target to $4 billion and then to $2 billion before canceling the IPO.
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