Pershing Square Inc. has filed for an IPO, marking the debut of billionaire Bill Ackman’s hedge fund on the NYSE, along with a new closed-end fund.
Ackman aims to raise between $5 billion and $10 billion for Pershing Square USA in the combined deal, with investors able to purchase shares in the closed-end fund at $50 each.
The initial public offering includes a stake in Pershing Square USA Ltd., a closed-end fund, and Ackman’s Pershing Square Capital Management, according to the filings. For every 100 shares of the closed-end fund IPO purchased, the investor will receive 20 shares in the hedge fund management company, the filings show.
Part of the funding will come from a private placement, with $2.8 billion secured from qualified investors such as family offices, pension funds, and insurance companies, according to the filing. Investors in this private placement will get 30 shares in the management company for every 100 shares they buy of the closed-end fund.
“Permanent capital allows us to take a long-term view and be opportunistic during periods of market volatility, without being exposed to the need to raise capital by selling assets to meet redemptions during such periods,” the filing said.
Ackman often references Warren Buffett as the inspiration behind building and growing his two-decade-old hedge fund management company.
The company filed to list under the symbol “PS.”
By CEO NA Editorial Staff
