Ackman's Pershing Square raising $1 billion, eyeing IPO, source says
Changes source, adds details throughout
By Carolina Mandl
May 31 (Reuters) -Billionaire Bill Ackman's hedge fund Pershing Square Capital Management is finalizing a roughly $1-billion funding round with institutional investors and family offices as well as eyeing an initial public offering (IPO) in the future, a source familiar with the matter said on Friday.
Investors are valuing the firm, which has $16.3 billion in assets, at $10.5 billion, the source added.
The Wall Street Journal reported earlier on Pershing's funding round and IPO plans.
Roughly $500 million of the money raised with investors will anchor Pershing Square USA, a new investment portfolio in the U.S. It will be listed on the New York Stock Exchange and available to anyone who can invest in the U.S, including retail investors, the source said, confirming details in the Journal report.
This new fund will mimic his existing hedge fund but offer lower fees and quicker access to capital and could lure some of Ackman's 1.2 million followers on social media platform X.
The other half of the money will be used in funds that the firm expects to launch.
A potential IPO is further off and could happen next year or in 2026, the source said.
Many investment firms, including British hedge fund Man Group EMG.L, are listed. Man Group has $175.7 billion under management and a market capitalization of roughly $4 billion.
In talks with investors, however, Ackman has said his business has a structure more similar to Ares Management Corp ARES.K and Blue Owl Capital OWL.N, the source said. Those funds have $428 billion and $174 billion in assets and market capitalizations of $44.3 billion and $27.6 billion, respectively.
The hedge fund billionaire did not respond to a Reuters request for comment.
Pershing Square, which has a publicly listed fund in Europe, returned 26.7% last year, beating broader stock market gains and bouncing back from a loss in 2022.
Founded by Ackman in January 2004, Pershing Square Capital Management generally invests in roughly a dozen stocks and is best known for its activist campaigns.
Reporting by Carolina Mandl, in New York, and additional reporting by Pritam Biswas in Bengaluru; Editing by Shinjini Ganguli, David Holmes, Megan Davies and Rod Nickel
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