Catenaa, Monday, April 27, 2026- Billionaire Bill Ackman’s IPO of his closed-end fund and his alternative asset management company is expected to raise about $5 billion.
Bloomberg News reported that the initial public offering of shares in Pershing Square USA, which includes free shares of Pershing Square, is about 85% covered by institutional investors.
The $5 billion figure includes the $2.8 billion private placement disclosed in US Securities and Exchange Commission filings, the report said.
The deal is expected to stop taking orders at 4 p.m. New York time on Monday and to price on April 28 as scheduled, the report said.
The IPO was targeting as much as $10 billion, according to an earlier statement. The private placement funds are contingent on raising a minimum of $5 billion, Ackman said in an investor presentation.
Deliberations are ongoing, and details of the offering could still change, Bloomberg News reported.
The IPO would bolster Ackman’s shift in recent years toward a more permanent base of capital, letting him pick winners and allow them to bloom without worrying about investors yanking their money.
His alternative asset manager has roughly $30.7 billion in total assets under management, with $20.7 billion of that in fee-paying assets as of the end of 2025.
The closed-end fund structure doesn’t provide opportunities for redemptions by investors, and unlike a mutual fund, doesn’t continuously create or redeem shares, meaning prices can trade at a premium or discount to the value of the underlying holdings.
Pershing Square Holdings, his London-listed closed-end fund, recently added a sizable stake in Meta Platforms Inc., joining new bets in the last 12 months, including Amazon and Hertz Global Holdings, an investor presentation showed.
For every five shares of Pershing Square USA investors buy, they will receive one share of Pershing Square at no additional cost, the filings show. Private placement investors buying five shares of the closed-end fund will receive 1.5 Pershing Square shares.
Ackman’s latest attempt at a long-term public investment fund strategy comes after a plan to raise as much as $25 billion for a New York Stock Exchange-listed closed-end fund floundered in 2024.
Pershing Square pivoted to boosting its Howard Hughes Holdings stake a few months later to use as a vehicle for taking majority stakes in other firms.
Pershing Square USA will charge a 2% management fee and won’t charge a performance fee, according to the filings.
After the IPOs, an investment vehicle controlled by Ackman, Chief Investment Officer Ryan Israel, and other executives, is expected to have voting power over Pershing Square.
The combined offering is being led by Citigroup, UBS Group AG, Bank of America, Jefferies Financial Group, and Wells Fargo.
The closed-end fund will be listed on the New York Stock Exchange under the symbol PSUS, while the hedge fund manager will trade under the ticker PS.
