Hedge fund manager Bill Ackman achieved a significant milestone Tuesday when his investment firm Pershing Square successfully secured $5 billion through a new publicly-traded fund launch on Wall Street.
The public offering represents the fulfillment of Ackman’s longtime ambition to establish a flagship investment vehicle trading on the New York Stock Exchange. This new fund, called Pershing Square USA, differs from his previous offerings by eliminating performance fees and targeting both institutional and individual investors.
Ackman had previously attempted to launch this same fund in 2024, but withdrew the public offering just days before its scheduled debut when investor interest fell short of expectations.
Trading for both Pershing Square USA and Pershing Square commenced Wednesday on the NYSE, with the ticker symbols “PSUS” and “PS” respectively.
Major investors including family investment offices, pension funds, insurance companies, and wealthy individuals competed for access to Ackman’s investment expertise, more than two decades after he established Pershing Square Capital Management in New York.
Reuters previously reported Monday that the offering attracted more demand than available shares, with institutional investors accounting for over 85% of purchase orders.
The timing coincides with SpaceX, owned by Elon Musk, preparing what could become the largest initial public offering ever, with the space company expected to begin investor presentations in early June.
The newly launched fund will follow Ackman’s established investment approach, focusing on 12 to 15 large-capitalization companies listed in North America.
Ackman built his reputation as a skilled Wall Street investor through activist campaigns that pushed major corporations including Canadian Pacific Railway and Chipotle Mexican Grill to implement strategic changes.
The market for closed-end fund public offerings has remained quiet in recent years, as these investment vehicles typically trade below the value of their underlying holdings, making them less attractive to investors.
To enhance the appeal of this offering, Ackman provided additional incentives by including bonus shares in his management company, giving investors one Pershing Square share for every five PSUS shares they purchased.
Ackman has indicated that a successful launch of PSUS could lead to additional closed-end investment funds from Pershing Square in the future.
The combined public offering was managed by several major financial institutions serving as global coordinators and bookrunners: Citigroup, UBS Investment Bank, BofA Securities, Jefferies, and Wells Fargo Securities.
