Renowned hedge fund manager Bill Ackman is preparing to raise $5 billion for a newly established U.S.-listed closed-end fund, with $2 billion already secured from anchor institutional investors. The fund will launch its initial public offering (IPO) concurrently with his flagship firm, Pershing Square Capital Management, in early 2026.
The billionaire investor, famous for his activist approach that drove transformations at companies like Chipotle Mexican Grill (CMG.US) and Canadian Pacific (now Canadian Pacific Kansas City), is introducing his first new fund in years. This vehicle will allow investors to gain partial ownership in his successful hedge fund strategy while offering lower fees and broader accessibility—appealing to pension funds, endowments, and retail investors typically excluded from hedge funds.
Originally slated for 2025, the closed-end fund aims to mirror Ackman’s existing investment approach. As part of a dual-listing incentive, investors will receive free shares in Pershing Square, while firm partners may divest up to 10% of their holdings. Sources caution that plans remain subject to market conditions, with further details expected in early December during a banking analyst briefing.
Ackman initially laid groundwork for this fund in early 2024 but shelved the $25 billion Pershing Square USA IPO in July 2024 just days before its NYSE debut, later scaling back targets due to tepid demand. Closed-end funds often struggle with fundraising as secondary-market prices trade below net asset value, prompting this innovative equity-kickback structure to attract capital.
Pershing Square’s valuation surpassed $10 billion after a 2023 private stake sale. The firm has since expanded, including raising its Howard Hughes (HHH.US) stake to 47% in May as part of a Berkshire Hathaway (BRK.A.US)-style diversification into insurance and holding companies.
Ackman also plans a hedge fund focused on "asymmetric trades"—low-risk, high-reward bets like his 2020 pandemic hedge, which turned $27 million into 100x returns. His $21 billion asset manager, primarily invested in London-listed Pershing Square Holdings, has delivered 17.2% returns year-to-date after consecutive double-digit gains in 2023–2024.
Notably, Ackman’s social media presence on X (1.8M followers) rivals his investing fame, where he opines on politics, education, and even dating advice alongside market insights.