Billionaire investor Bill Ackman’s initial public offering (IPO) for his closed-end fund, Pershing Square USA Ltd, and his alternative asset management company, Pershing Square Inc, is anticipated to raise approximately $US5 billion ($7 billion). This figure represents the lower end of the initially targeted fundraising range, according to sources familiar with the matter. The offering, which includes free shares of Pershing Square Inc with purchases of Pershing Square USA Ltd, is reportedly about 85 per cent covered by institutional investors. The $US5 billion total incorporates a $US2.8 billion private placement previously disclosed in US Securities and Exchange Commission filings. The deal is expected to conclude order taking on Monday, New York time, with pricing slated for April 28 as scheduled.
Pershing Square is an alternative asset manager that oversees substantial capital across various investment vehicles. The company generates returns by identifying and investing in publicly traded companies, often taking significant stakes. This IPO is central to Ackman’s strategic shift towards securing a more permanent capital base, enabling longer-term investments without the risk of immediate investor redemptions. Pershing Square’s alternative asset manager reported roughly $US30.7 billion in total assets under management, with $US20.7 billion classified as fee-paying assets, as of late 2025. The closed-end fund structure inherently limits investor redemptions, providing a stable capital foundation.
Under the offering, investors purchasing five shares of Pershing Square USA will receive one share of Pershing Square Inc at no additional cost, with private placement investors receiving 1.5 shares. The Pershing Square USA fund will levy a 2 per cent management fee but will not charge a performance fee. The combined offering is being led by a syndicate of major financial institutions, including Citigroup, UBS Group, Bank of America, Jefferies Financial Group, and Wells Fargo & Co. This latest effort follows a prior attempt in 2024 to raise up to $US25 billion for a New York Stock Exchange-listed closed-end fund, which did not proceed as planned.
