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from the world of economics and financeBillionaire hedge fund manager Bill Ackman is marketing the initial public offering of Pershing Square, a US closed-end fund that could raise as much as $25 billion. In a briefing with prospective investors, Ackman drew parallels to Warren Buffett’s Berkshire Hathaway (BRK.B), emphasizing his aim to create generational wealth. The Zoom town hall featured Ackman and Pershing Square Chief Investment Officer Ryan Israel fielding questions from around 400 participants.
Ackman’s US closed-end fund will mirror Pershing Square Holdings, its European counterpart, targeting long-term equity stakes in large-cap, investment-grade, free-cash-flow-generating North American growth companies. The fee structure for Pershing Square USA includes a 2% management fee, with the first year waived, compared to its European peer’s 1.5% annual fee and 16% performance fee. Pershing Square USA will be a perpetual fund with no option to liquidate or extend its life upon shareholders' approval.
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The new fund’s structure is unusual among recent launches, as most closed-end funds have a termination or liquidation date to trade closer to net asset value. Ackman’s confidence in his ability to outperform the equity markets through strategic investment and moderate to aggressive activism is expected to attract investors despite the fund bearing the IPO’s underwriting fees.
Ackman also discussed Pershing Square’s recent sale of a 10% stake in the hedge fund ahead of a potential IPO of its own, which could occur as soon as late 2025 or 2026. The upcoming global town halls are part of Ackman’s strategy to engage with potential investors and build momentum for the IPO.
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