Pershing Square’s IPO Set to Raise $5 Billion
Pershing Square, the hedge fund founded by Bill Ackman, known for its unique investment strategies, is projected to secure $5 billion in its upcoming initial public offering, which is at the lower end of its anticipated range, sources informed the Post.
Ackman had initially aimed to raise between $5 billion and $10 billion through a dual IPO for both his closed-end fund and the hedge fund. These funds are listed on the New York Stock Exchange, trading under the names Pershing Square, with ticker symbols PSUS and PS.
Even though the IPO saw high demand—essentially oversubscribed—the final amount raised is likely to be around $5 billion, insiders indicated to the Post.
The IPO is set to be priced on Tuesday, as scheduled, and is expected to be primarily backed—about 85%—by institutional investors, accompanied by a $2.8 billion private placement, according to sources who spoke with Bloomberg.
Negotiations are reportedly still underway, with the potential for changes in the details.
Pershing Square opted not to comment further.
As of late 2025, alternative hedge funds were reported to manage roughly $30.7 billion in total assets, which includes $20.7 billion in fee-based assets, based on the filing.
Pershing Square established its reputation as a contrarian firm when Ackman achieved a remarkable 100-fold return on investments linked to hedges against the coronavirus pandemic, bringing him $2.6 billion in profits.
Ackman, whose net worth is estimated at around $9 billion, advised traders to invest $27 million in protective measures specifically aimed at credit markets, citing concerns that the pandemic would negatively impact the economy. This strategy paid off significantly.
This IPO represents Ackman’s latest endeavor in public investing, following the unsuccessful attempt to gather $25 billion for a closed-end fund on the New York Stock Exchange in 2024.
Closed-end funds operate differently from mutual funds; they do not have shares that are constantly created or redeemed, making their funding process notably challenging.
Months after the 2024 IPO setback, Ackman doubled down on his investment in Howard Hughes Holdings, envisioning it as a potential “next Berkshire Hathaway.”
The new IPO offers investors a stake in both the hedge and closed-end funds. For every 100 shares purchased from the closed-end fund’s IPO, investors will also acquire 20 shares of the management company’s stock, as outlined in an SEC filing.
According to the filing, Pershing Square plans to impose a 2% management fee but will not charge a performance fee.
Ackman, along with Chief Investment Officer Ryan Israel and other Pershing Square leaders, will maintain control over the investment vehicle post-IPO, holding the voting rights. The joint IPO is being managed by Citigroup, UBS Group AG, Bank of America, Jefferies, and Wells Fargo.
