Bill Ackman‘s hedge fund Pershing Square Capital Management will sell a 10% stake of its equity interest ahead of its plans to offer an IPO.
What Happened: Pershing Square announced the sale in a statement on Monday morning.
Investors were reported to include Arch Capital Group Ltd. ACGL, BTG Pactual, Consulta Limited, ICONIQ Investment Management, Menora Mivtachim Holdings and others.
"We are delighted to invite a group of world-class, long-term partners as investors in our business, which has been entirely owned by Pershing Square employees since our inception more than 20 years ago," Ackman said. "This new investment will help accelerate our growth in assets under management in existing and new strategies. As always, Pershing Square will remain intensely focused on generating high, long-term returns for our investors."
Why it Matters: Ackman founded Pershing Square in 2004; the firm is now valued at approximately $10.5 billion. Ackman stands to profit billions from a potential IPO. Ackman’s father, Lawrence D. Ackman, had a successful career in real estate.
Ackman was one of the highest-earning hedge fund managers in 2023. The renowned investor holds significant stakes in Chipotle Mexican Grill, Inc. CMG, Hilton Hotels Corporation HLT and Restaurant Brands International Inc
QSR.
Ackman has commented extensively in support of Israel while criticizing President Joe Biden and Diversity, Equity and Inclusion (DEI) hiring practices. Ackman’s frequent posting on X has given the billionaire a national profile, albeit with substantial criticism.
Ackman successfully pressured Harvard University, his alma mater, into firing university President Claudine Gay over improper citations in her academic research. Critics noted that Ackman’s wife, academic Neri Oxman, used similar citation practices in her research.
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