Bill Ackman, the CEO of Pershing Square, revealed that he was inspired by Warren Buffett‘s career to take his funds public.
What Happened: Ackman, who is currently on a roadshow to take Pershing Square USA Ltd. public, cited Buffett’s career as the inspiration behind the development of his hedge fund management company, CNBC reported on Sunday.
He noted that Buffett’s career path, particularly his transition from private partnerships to managing Berkshire Hathaway, influenced his decision to take Pershing Square public.
During a virtual presentation, Ackman shared that Buffett’s career path greatly influenced his decision to develop his hedge fund management company, Pershing Square. Ackman discovered Buffett’s writings in his early 20s and was inspired by the “Oracle of Omaha’s” unique journey.
Buffett began as an activist investor and hedge fund manager before taking control of Berkshire Hathaway in the 1960s. This story resonated with Ackman, who has aimed to manage a permanent capital entity similar to Buffett’s.
Ackman, 58, has been vocal about his admiration for Buffett, whom he considers his “unofficial mentor.” He has also attended Berkshire’s annual meetings in Omaha, Nebraska, including this year’s gathering.
With nearly 90% of Pershing’s assets now in a permanent capital format, Ackman is aiming to offer a similar closed-end fund listed on the New York Stock Exchange. This move could potentially pave the way for an IPO of his management company.
Why It Matters: This announcement comes after Ackman’s hedge fund, Pershing Square USA, is set to offer shares at $50 per share in an IPO in New York. The fund, which mirrors Ackman's existing Europe-listed hedge fund, Pershing Square Holdings, offers lower fees and quicker access to capital.
Earlier in June, Ackman’s hedge fund sold a 10% stake of its equity interest ahead of its plans to offer an IPO. The investors included Arch Capital Group Ltd., BTG Pactual, Consulta Limited, ICONIQ Investment Management, Menora Mivtachim Holdings, and others.
Moreover, Ackman, who is known for his bold investment strategies, recently publicly endorsed former President Donald Trump for the upcoming presidential election. This endorsement was announced on social media platform X, where Ackman assured his followers that his decision was made rationally and based on empirical data.
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Image Via Wikimedia Commons
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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