Bill Ackman is making waves again by entering the IPO market with his new offering called Pershing Square USA Ltd. This closed-end fund will allow investors to not only buy shares in the fund but also gain stakes in his asset management company, Pershing Square Inc. Specifically, for every 100 shares purchased in the fund, buyers will get 20 shares in the management firm.
Ackman aims to raise between $5 billion and $10 billion through this initiative. Shares of the closed-end fund are priced at $50, and the shares for the management company come at no extra cost.
This move reflects Ackman’s long-term vision to attract public market investors, inspired by strategies used by well-known figures like Warren Buffett. His previous attempt to raise $25 billion through a New York Stock Exchange-listed fund fell short last year. In response, he shifted focus to increasing his stake in Howard Hughes Holdings, which helps him gain substantial positions in other companies.
In a recent letter to investors, Ackman pointed out that recent global events, like the conflict in Iran, are creating buying opportunities. He believes that market disruptions allow them to acquire strong companies at lower prices. He stated, “We believe now is one of these opportune times.”
As of the end of 2025, Pershing Square had about $30.7 billion in assets under management, with $20.7 billion in fee-paying assets. Ackman is known for his bold investment strategies, often taking significant positions in a select few stocks, including Alphabet Inc., Chipotle, and Brookfield Corp.
Ackman is not alone in the fundraising space. Recently, Robinhood Markets’ attempt to raise $1 billion through a closed-end fund fell short, securing only $658.4 million. This highlights the challenges faced by such offerings amid a volatile market.
Pershing Square USA will charge a 2% management fee, and after the IPOs, Ackman and his team will maintain significant voting power over Pershing Square Inc. The offering is backed by major firms like Citigroup and Bank of America, with the fund expected to list under the symbol PSUS on the New York Stock Exchange.
In a market where dynamics are constantly changing, Ackman’s strategic moves could redefine how hedge fund managers engage with public investors. As market conditions evolve, it remains to be seen how effective this offering will be and whether it can draw in the desired capital.
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Bill Ackman, Pershing Square, Bloomberg, hedge fund manager, IPO, closed-end fund
