Pershing Square, the company of Bill Ackman, files for Initial Public Offering in the United States.

Automated translation by Reuters using machine learning and AI, please refer to the following disclaimer: https://bit.ly/rtrsauto

Comments from analysts added to paragraphs 6, 7, and 17 by Arasu Kannagi Basil and Ateev Bhandari

Billionaire investor Bill Ackman’s Pershing Square firm filed for an initial public offering of its hedge fund and a new fund in the United States on Tuesday, preparing to join the small club of publicly traded alternative asset managers.

This move marks a significant milestone for Mr. Ackman, the activist investor who has established himself as one of the most closely watched investors on Wall Street. He is known for his activism in pushing for changes in companies such as Chipotle Mexican Grill and Canadian Pacific Railway.

Mr. Ackman had previously attempted to take the new fund, Pershing Square USA, public in 2024, but canceled the launch a few days before the IPO.

Investors in the new fund will receive 20 shares of Pershing Square for every 100 shares purchased in the new fund as a premium.

Pershing Square USA aims to raise between 5 and 10 billion dollars through the IPO and a private placement. The fund is selling shares at $50 each.

“While the structure is innovative, it may be too convoluted for retail investors. Accredited and non-accredited investors will have to decide if they are comfortable buying into a closed-end fund that doesn’t allow them to redeem shares for the underlying assets,” said Troy Hooper, co-head of capital markets for North America at Mergermarket.

“Investors may be more willing to tolerate the risk of the fund trading below net asset value if they believe the management company’s involvement compensates for the difference. However, this does not eliminate the underlying risk related to the fund’s performance.”

The fund secured $2.8 billion in commitments through a private placement from investors such as family offices, pension funds, and insurance companies. These investors will receive 30 shares of Pershing Square for every 100 shares purchased in the new fund.

Pershing Square USA is expected to mirror Ackman’s existing hedge fund and will invest in 12 to 15 undervalued North American companies. The fund will offer quicker access to capital and will not charge performance fees to attract a larger investor base.

MARKET VOLATILITY

“Often, investment banks advise companies considering an IPO to delay their offering in such market conditions, as IPO investors lower the price they are willing to pay for a company when risk premiums increase,” Mr. Ackman stated in a letter, referring to market volatility due to the American-Israeli war against Iran.

“If this advice is prudent for operating companies, the opposite holds true for investment vehicle IPOs like PSUS, as greater stock market disruptions are advantageous for the PSUS acquisition program.”

In Pershing Square’s 2025 annual report, Mr. Ackman cited “the potential for a Middle East peace dividend” as one of the top ten drivers of strong financial performance in 2026.

Pershing Square sold a 10% stake to a consortium of institutional investors and family offices for a valuation of $10.5 billion in 2024, prior to the planned IPO.

The firm managed approximately $30.7 billion in assets at the end of December, with the majority invested in the listed closed-end fund Pershing Square Holdings (PSHP.L) in London.

PUBLIC FIGURE

Over the years, Ackman’s investment strategy has evolved from “transactional activism,” which involved pressuring companies to change their stock prices, to value creation as an “insider,” by joining the boards of mid-sized companies like mall operator General Growth Properties, which Ackman touted as his best investment ever.

Unlike the typically limited public engagements of larger Wall Street investment managers, Mr. Ackman often speaks on the social media platform X in elaborate posts, closely followed by Wall Street and Capitol Hill.

“Ackman’s political comments also add another layer of risk. Investors are not just buying exposure to the fund’s portfolio but also its public persona. Any impact on his reputation could have a negative effect on the fund’s stock price,” stated Mr. Hooper.

Citigroup, UBS Investment Bank, BofA Securities, Jefferies, and Wells Fargo Securities are the global coordinators and bookrunners for the combined offering.

Pershing Square and Pershing Square USA will be listed on the New York Stock Exchange under the symbols “PS” and “PSUS,” respectively.