Ackman sells Pershing Square stake at $10.5 billion valuation, eyes IPO | Wilnesh News

Billionaire investor Bill Ackman is selling a 10% stake in Pershing Square with the goal of eventually taking his investment company public.

Ackman’s company will raise $1.05 billion in a funding round for a 10% stake in the management company, which would imply a valuation of $10.5 billion, according to people familiar with the matter. Investors in the deal are institutions and family offices, said the sources, who wished to remain anonymous.

wall street journal The move was first reported. Pershing Square declined to comment.

With this funding round, the hedge fund manager plans to eventually launch a U.S. initial public offering, but he has not yet hired bankers or officially started the process, sources said.

Two years ago, Ackman appointed Ryan Israel as chief investment officer, the first time the billionaire hedge fund manager named someone else to run the company’s day-to-day investments. Ackman serves as CEO and has final control of decisions, although he has said Israel will be his successor to run the company If he was hit by a “pie truck”.

Pershing Square had $18.6 billion in total assets under management as of the end of April. Most of its money is in Pershing Square Holdings, a closed-end fund that trades on Euronext.

After years of market-top returns and aggressive activist activity, Ackman has become one of the world’s best-known hedge fund investors. He has also gained widespread following on social media platform X, where he has 1.2 million followers and comments on issues ranging from anti-Semitism to the presidential election.

Earlier this year, Ackman unveiled plans to list a new investment vehicle on the New York Stock Exchange, a move aimed at capitalizing on his following among mainstream investors. He is launching a publicly traded closed-end fundinvesting in 12 to 24 large, investment-grade, “sustainable growth” companies in North America.

As of the end of March, the popular investor’s hedge fund held just six stocks, including Alphabet, Chipotle Mexican Grill and Hilton Hotel. The stock has gained 26.7% in the past year.

In 2022, Ackman abandoned his aggressive short selling, which led to One of the most colorful battles in Wall Street history versus Herbalife.