Billionaire hedge fund manager Bill Ackman began marketing efforts Monday for a dual public stock offering involving his investment management firm and a newly created fund.
The marketing campaign launches during volatile market conditions following unsuccessful weekend negotiations between the United States and Iran that failed to produce an agreement to halt the ongoing seven-week conflict.
The newly established fund, called Pershing Square USA, aims to collect between $5 billion and $10 billion through its stock market launch and private investor sales. Each share will be priced at $50.
Private investors have already committed $2.8 billion to the fund, including family investment offices, retirement funds, and insurance firms. These early backers will get 30 shares of Pershing Square for every 100 shares they buy in the new fund.
This marks Ackman’s second attempt at launching the new fund publicly, after abandoning a 2024 debut just days before the planned launch due to multiple obstacles.
Ackman established his hedge fund, Pershing Square Capital Management, in 2004. The firm typically holds positions in about twelve companies including Amazon and Uber, and has gained recognition for its shareholder activism efforts.
The new Pershing Square USA fund will follow a similar strategy to Ackman’s current hedge fund, targeting 12 to 15 undervalued companies listed on North American exchanges. The fund promises faster capital access and eliminates performance fees to attract a broader range of investors.
Both entities will trade on the New York Stock Exchange, with Pershing Square USA using the ticker symbol “PSUS” and Pershing Square trading under “PS.”
“A large and successful PSUS IPO will also likely contribute to our success in launching other closed-end investment companies,” Ackman stated in a letter to Pershing investors last month when announcing the combined public offering.
Major financial institutions Citigroup, UBS Investment Bank, BofA Securities, Jefferies, and Wells Fargo Securities are serving as the primary coordinators and bookrunners for the dual public offering.
