Billionaire investor Bill Ackman has taken a step toward listing his investment platform on public markets, filing for an initial public offering that would bring his hedge fund alongside a new closed-end investment vehicle to a US exchange.
The filing outlines a combined offering involving Pershing Square Capital Management and a newly created closed-end fund, Pershing Square USA Ltd.
The structure would allow investors to gain exposure to both Ackman’s investment management business and the capital deployed through the fund.
The planned listing forms part of Ackman’s long-standing ambition to build a permanent investment vehicle modeled on the approach used by Warren Buffett and Berkshire Hathaway.
Dual-listing structure for hedge fund and investment vehicle
Under the proposal, Pershing Square plans to list on the New York Stock Exchange under the ticker symbol “PS.”
The transaction would involve a dual structure in which Pershing Square’s common shares and the shares of its investment vehicle will both trade on the NYSE.
The securities will be listed at the same time but trade independently, allowing investors to buy or sell each separately.
The filing shows that for every 100 shares purchased in the closed-end fund offering, investors will receive 20 shares in Pershing Square Capital Management.
The arrangement would give investors ownership exposure to both the investment manager and the fund that deploys its capital.
The firm noted that there has previously been no public market for Pershing Square’s common stock before the proposed combined offering.
IPO targets up to $10 billion in new capital
Ackman is seeking to raise between $5 billion and $10 billion through the offering, with shares expected to be priced at $50 each.
The filing indicates that the deal has already secured $2.8 billion in commitments from qualified investors including family offices, pension funds, and insurance companies.
Investors participating in the private placement component of the offering will receive 30 shares in the hedge fund for every 100 shares of the closed-end fund they purchase.
The combined offering is being led by several major investment banks, including Citigroup, UBS, Bank of America, Jefferies Financial Group and Wells Fargo.
Ackman’s long-term strategy inspired by Buffett
The proposed listing marks the latest stage in Ackman’s effort to reshape Pershing Square into a permanent-capital investment platform similar to Berkshire Hathaway.
Ackman has frequently described himself as a “Buffett devotee,” saying the 93-year-old investment icon has been his “unofficial mentor” for years and noting that he regularly attends Berkshire Hathaway’s annual shareholder meetings in Omaha.
The Pershing Square founder has often pointed to Buffett’s early career managing private investment partnerships before transforming Berkshire Hathaway into a long-term compounding investment vehicle.
“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.
The IPO also comes after earlier attempts to create a similar vehicle.
In 2024, Pershing Square planned to raise as much as $25 billion for a New York Stock Exchange-listed closed-end fund, but the effort ultimately did not proceed.
That same year, Ackman sold a 10% stake in Pershing Square in a private transaction that valued the firm at more than $10 billion ahead of the proposed public listing.
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