Billionaire Investor Bill Ackman Delays IPO of Pershing Square Fund

Billionaire investor Bill Ackman has announced the postponement of the initial public offering (IPO) for Pershing Square USA Ltd., a U.S. closed-end fund, as detailed in a notice on the New York Stock Exchange's website. The IPO, which was set to trade under the ticker PSUS, will now occur at a later date yet to be determined. In a statement, the firm clarified that it is still moving forward with the IPO, emphasizing that the pricing date will be announced soon. Closed-end funds, like the one Ackman is launching, offer a fixed number of shares during their IPO and subsequently trade on market exchanges. However, the trading price may not align with the fund's net asset value, leading to potential premiums or discounts. Ackman acknowledged the challenges associated with this fund structure, particularly given the historical difficulties faced by closed-end funds, which may deter some investors. As of June, Pershing Square managed $18.7 billion in assets, primarily through its European fund, Pershing Square Holdings, valued at $15 billion. Ackman's new fund aims to attract a similar investment strategy in the U.S. market, potentially setting the stage for a future IPO of his management company. This move is seen as a strategy to engage with a broader base of retail investors, especially after Ackman gained significant traction on social media. The closed-end fund is expected to focus on investing in 12 to 24 large-cap, investment-grade companies in North America. Ackman highlighted the advantages of managing permanent capital, which allows for a long-term investment approach, contrasting it with the challenges of traditional hedge funds that face constant investor withdrawals.