Bill Ackman Plans $2 Billion IPO for Pershing Square Fund

Hedge fund manager Bill Ackman is set to launch an initial public offering (IPO) for Pershing Square USA, aiming to raise $2 billion by offering 40 million shares at a price of $50 each. The firm has also provided underwriters with the option to purchase an additional six million shares. This IPO will take the form of a closed-end fund, which is anticipated to mirror the investment positions held by Ackman's other funds. The IPO was initially scheduled for early this week but faced a delay last Friday. Reports indicated that at one point, Pershing Square had aspirations to raise as much as $25 billion. However, Ackman later revised his expectations, communicating to strategic partners that he anticipated raising between $2.5 billion and $4 billion. In a notable move, Pershing Square disclosed this letter in a regulatory filing, which is uncommon for such communications, and officially distanced itself from the contents of the letter. The firm currently operates a closed-end fund in Europe, which is trading at a discount to its net asset value, highlighting the challenges faced in the market. As the IPO progresses, investors will be closely monitoring the developments surrounding Pershing Square USA, particularly in light of the recent adjustments to its fundraising goals and the implications of its European fund's performance.