Pershing Square Holdings (LSE:PSH), the new closed-end fund managed by billionaire investor Bill Ackman, is preparing to go public in a combined initial public offering that also includes stakes in Pershing Square Capital Management, his hedge fund management firm, according to US Securities and Exchange Commission filings.
Under the offering structure, investors in Pershing Square USA will receive shares in the management company at no additional cost. For every 100 closed-end fund shares purchased at $50 apiece, investors will receive 20 shares of Pershing Square Capital.
Ackman is seeking to raise between $5 billion and $10 billion through the combined IPO.
The deal also includes a private placement that has already secured $2.8 billion from qualified investors such as family offices, pension funds, and insurance companies. In that tranche, investors will receive 30 management company shares for every 100 closed-end fund shares purchased.
The offering represents Ackman’s latest effort to bring his long-term investment strategy to a broader range of investors, following a 2024 plan to raise $25 billion for a closed-end fund that did not materialize. Pershing Square has since focused on strategic stakes through Howard Hughes Holdings Inc.
Once the IPO is completed, the filings indicate that the closed-end fund and the management company are expected to trade independently.