Ackman's Fund Secures $5 Billion in Initial Public Offering for Permanent Capital Strategy

Bill Ackman Raises $5 Billion in Combined IPO for Pershing Square

Bill Ackman's combined initial public offering (IPO) for his closed-end fund, Pershing Square USA Ltd., and alternative asset manager, Pershing Square Inc., has raised $5 billion. This significant amount adds to Ackman's war chest for long-term investments, mirroring the strategies employed by Warren Buffett.

The IPO includes a previously-disclosed $2.8 billion private placement, according to a statement confirming an earlier Bloomberg News report. The IPO was set to raise as much as $10 billion and will result in two listed entities: Pershing Square USA Ltd., a closed-end fund, and Pershing Square Inc., an asset manager.

Pershing Square USA Ltd. will charge a 2% management fee, with no performance fees. In contrast to mutual funds, closed-end funds like Pershing Square USA Ltd. don't continuously create or redeem shares, which can lead to prices trading at a premium or discount to the value of the underlying holdings. This feature has historically complicated fundraising.

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IPO Pricing and Institutional Investor Participation

The IPO, including the private placement, was about 85% covered by institutional investors. The private placement funds are contingent on raising a minimum of $5 billion, as stated by Ackman in an investor presentation.

Pershing Square's shift toward public markets has been in the works since at least 2024, when Ackman agreed to sell a 10% stake in a private deal that valued it at more than $10 billion ahead of the planned IPO. The firm has been focusing on growing its asset base and reorganizing its business, including moves to boost its stake in property company Howard Hughes Holdings Inc. and fashion it into a conglomerate holding various interests.

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Pershing Square has roughly $30.7 billion in total assets under management, with $20.7 billion of that in fee-paying assets as of the end of 2025, according to filings with the US Securities and Exchange Commission.

Ackman's London-listed closed-end fund has lagged the S&P 500 in recent years, trailing the index in one-year, three-year, and five-year intervals, data compiled by Bloomberg show.

Comparison of Pershing Square's Holdings and Performance

Pershing Square's funds have made bets on household names such as Alphabet Inc. and Chipotle Mexican Grill Inc. The firm has recently added a sizable stake in Meta Platforms Inc. and has made new bets in the last 12 months, including Amazon.com Inc. and Hertz Global Holdings Inc.

After the IPOs, an investment vehicle controlled by Ackman, Chief Investment Officer Ryan Israel, and other executives, is expected to have voting power over about 75% of Pershing Square Inc.'s shares, according to filings.

Citigroup Inc., UBS Group AG, Bank of America Corp., Jefferies Financial Group Inc., Wells Fargo & Co., and more than 20 other banks worked on the IPO. The closed-end fund will be listed on the New York Stock Exchange under the symbol PSUS, while the hedge fund manager will trade under the ticker PS.