Bill Ackman's Pershing Square IPO Set to Generate $5 Billion, According to Sources

Bill Ackman, founder and CEO of Pershing Square Capital Management, was spotted at the Milken Conference 2025 in Beverly Hills, California, on May 6, 2025. Sources indicate that Ackman is poised to raise $5 billion through a new closed-end fund, marking it as potentially the largest initial public offering in recent years and the biggest-ever IPO for a closed-end fund. The Pershing Square Inc shares will begin trading on Wednesday under the ticker PS, while the closed-end fund, Pershing Square USA, will trade as PSUS. The pricing for PSUS has been set at $50 per share. Originally, Ackman aimed to raise between $5 billion and $10 billion, but later decided to maintain a target of $5 billion, as relayed by sources who spoke under anonymity. A representative from Pershing Square opted not to comment on the matter. Final order submissions were set to close at 4 p.m. Eastern Time on Monday. Notably, Pershing Square will provide investors with 1 share in the public firm for every 5 shares acquired in the new fund. The offering received strong interest, with more than 85% of orders stemming from institutional investors; sources revealed that $2.8 billion of the anticipated $5 billion will be sourced from cornerstone investors, whose funds will be locked away for six months. These cornerstone participants will also receive 1.5 shares in Pershing Square for every 5 shares purchased in the new fund. Bloomberg was the first to report the expected fundraising figure of $5 billion. Family offices, pension funds, insurers, high-net-worth individuals, and asset managers are eager to invest, showcasing the demand for Ackman’s investment expertise nearly 22 years after he established Pershing Square Capital Management in New York. Ackman's reputation grew as he successfully campaigned for various high-profile companies, such as Canadian Pacific Railway and Chipotle Mexican Grill, to achieve better performance, while also sharing opinions on political matters through social media. Pershing Square Holdings, a closed-end fund listed in London, has delivered returns of 380.4% over the past decade and 52.1% over the last five years. This listing follows a prior IPO withdrawal in 2024, just days before its anticipated launch due to lower-than-expected demand. The Pershing IPO coincides with SpaceX’s preparations for what could become the largest IPO in history, propelling space exploration into a more mainstream investment arena. The combined offering is being orchestrated by Citigroup Inc, UBS Group AG, Bank of America Corp, Jefferies Financial Group Inc, and Wells Fargo & Co.