Bill Ackman, founder and CEO of Pershing Square Capital Management.
Adam Jeffery | CNBC
Billionaire investor Bill Ackman is reportedly delaying the heavily scrutinized listing of Pershing Square’s U.S. closed-end fund Notice on the New York Stock Exchange website.
The initial public offering of Pershing Square USA Inc. (ticker PSUS) has been postponed, with a specific date to be announced, according to the website. Ackman currently hopes to raise $2.5 billion to $4 billion for the fund, according to Ackman, which is well below the $25 billion target a few weeks ago. regulatory filing Thursday.
Pershing Square declined further comment.
A closed-end fund sells a certain number of shares during an IPO and trades them on a market exchange after the IPO. The price of a fund does not necessarily match the net asset value of a stock, so the fund may trade at a premium or discount.
“The size of the transaction is very sensitive,” Ackman said in a July 24 letter to investors that was included in the filing. “Especially given the novelty of the structure and the very negative trading history of closed-end funds, it would take an enormous leap of faith and ultimately careful analysis and judgment by investors to realize that this closed-end company would be a good investment after its IPO. Will trade at a premium Historically few have done so.
Pershing Square had $18.7 billion in assets under management as of the end of June. Most of its money is in Pershing Square Holdings, a $15 billion closed-end fund traded in Europe. Ackman is seeking to list similar closed-end funds on the New York Stock Exchange, a move that could pave the way for an initial public offering of his management company.
The public listing of Ackman’s funds is seen as a move to capitalize on his influence among mainstream investors after he amassed more than 1 million followers on social media platform X, commenting on issues ranging from anti-Semitism to the presidential election. . publicly traded closed-end fund It is expected to invest in 12 to 24 large, investment-grade, “sustainable growth” companies in North America.
In his public roadshow presentation, Ackman highlighted the challenges of managing traditional hedge funds, where investors can withdraw their money at any time, which can lead to constant funding and appease investors. The advantage of managing permanent capital is that it gives him greater focus on his portfolio and enables him to pursue a long-term investment strategy.
“If you want to be a long-term investor in businesses, the challenge of managing a portfolio in which money can move in and out is enormous. Actions can have a significant negative impact on one’s returns,” Ackman said.
—CNBC’s Leslie Picker contributed reporting.
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