Pershing Square USA, a fund managed by billionaire Bill Ackman, is set to offer shares at $50 each in an initial public offering (IPO) in New York. The fund will be open to all investors in the United States, including retail investors.
What Happened: Pershing Square USA has not yet disclosed the exact number of shares to be offered. However, potential investors must purchase a minimum of 100 common shares to participate in the IPO, Reuters reported on Friday.
The new fund will mirror Ackman’s existing Europe-listed hedge fund, Pershing Square Holdings, but with lower fees and quicker access to capital. It will invest in 12 to 15 large, undervalued North American companies, charging a flat 2% management fee, waived for the first year.
In June, Ackman’s hedge fund Pershing Square Capital Management raised $1.05 billion by selling a 10% stake, valuing the firm at over $10 billion. Approximately $500 million from this sale will anchor Pershing Square USA, with the remaining funds to be used in future launches.
Pershing Square USA will be listed on the New York Stock Exchange under the symbol “PSUS.” Citigroup Global Markets, UBS Securities, BofA Securities, and Jefferies are the underwriters for the offering.
Why It Matters: Earlier this year, Ackman had announced plans to take Pershing Square public by 2025, following a funding round that valued the firm at approximately $10.5 billion. The firm managed about $16.3 billion in net assets as of April.
In June, Pershing Square Capital Management sold a 10% stake of its equity interest ahead of its plans to offer an IPO. The investors included Arch Capital Group Ltd. ACGL, BTG Pactual, Consulta Limited, ICONIQ Investment Management, Menora Mivtachim Holdings, and others.
Earlier in May, Pershing Square Holdings had made significant changes to its portfolio, including divesting all 1.25 million shares it held in Lowe's Companies, Inc. LOW.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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