Wall Street heavyweight Bill Ackman made his highly anticipated debut on the New York Stock Exchange Wednesday, launching his Pershing Square USA closed-end fund that brings his exclusive investment strategies to everyday investors for the first time.
The billionaire hedge fund manager successfully raised $5 billion through the public offering, with shares available at $50 each under the ticker symbol PSUS. His management company, Pershing Square, also began trading under the symbol PS. According to Dealogic, this ranks among the ten largest public offerings of the past decade.
Accompanied by his wife Neri Oxman and chief investment officer Ryan Israel, Ackman received enthusiastic applause from traders on the Manhattan exchange floor as trading commenced Wednesday morning.
Speaking with reporters, Ackman explained that his new fund aims to “democratize investing” by providing access to the substantial double-digit returns his investments have produced over two decades. Previously, hedge funds remained exclusive to ultra-wealthy investors who met strict regulatory standards proving they could handle significant financial risks.
However, Ackman warned that initial trading might experience volatility as some investors could seek quick profits from his hedge fund company or rapidly exit the closed-end fund. To increase appeal, he offered complimentary Pershing Square Inc shares to IPO buyers of Pershing Square USA – a strategy he credits to his wife’s suggestion.
The NYSE listing provides the only avenue for American investors to benefit from Ackman’s performance, since his London-listed Pershing Square Holdings fund cannot be directly marketed to U.S. residents due to regulatory restrictions.
Ackman’s track record shows impressive annual returns of approximately 25% over the past eight years, significantly outperforming the typical closed-end fund’s 7% return during the same period.
“This is something people will want to own,” Ackman stated, highlighting his ability to work closely with companies and manage fund risks while maintaining tax efficiency. “This is not going to be your grandmother’s closed-end fund.”
Wednesday’s successful launch represents a comeback for Ackman, who attempted a similar New York listing nearly two years ago but withdrew due to lukewarm investor response.
Major institutional investors who committed $2.8 billion of the total $5 billion and agreed to hold their investments for six months will receive 1.5 Pershing Square shares for every five Pershing Square USA shares purchased.
Ackman built his reputation and estimated $9 billion wealth through aggressive activist investing campaigns targeting companies like Canadian Pacific and Chipotle. He has become one of Wall Street’s most monitored investors, recently expanding his influence through social media platform X, where he shares opinions on topics ranging from health concerns about sugary beverages to presidential politics with his 2.1 million followers.
While Ackman initially expected his social media presence would help attract funding two years ago, he revealed that institutional investors – including family offices, pension funds, insurance companies, and wealthy individuals – provided more than 80% of this offering’s capital.
The new fund targets retail investors and will largely mirror Ackman’s existing investment strategies, focusing on holdings such as Alphabet (Google’s parent company), Universal Music Group, and Uber Technologies.
This launch occurs as the IPO market shows signs of recovery following increased volatility from Middle East conflicts and investor hesitation regarding AI-related software companies.
The offering will test market interest in closed-end funds, which frequently trade below the value of their underlying assets. These funds cannot be redeemed directly and only trade on secondary markets after initial allocation, making them susceptible to significant price fluctuations that can diverge from their actual net asset value.
“I would expect decent demand, but the structure with shares of the managing company as a sweetener suggests that the closed-end fund alone may not be enough to secure the desired level of investor interest,” commented IPOX Research Associate Lukas Muehlbauer.
