Listing in New York: Pershing Square announces changes
Hedge fund Pershing Square led a financing round and raised USD 1 billion. Institutional investors and family offices participated. Bill Ackman’s company is also planning to listing in New York.
Including the funds raised, the fund’s assets total more than USD 16 billion. At the same time, analysts estimate the company’s value to be USD 10.5 billion. The company plans to use the money raised in the financing round to develop a new division. This will be its investment portfolio in the US:
1. It will have a New York stock exchange listing.
2. It will allow investment in various American market assets.
3. The portfolio will be open to everyone, including retail investors.
The new unit’s functions will be almost identical to those of the existing Pershing Square. The difference will be low commissions and the ability to withdraw capital quickly.
Upcoming listing in New York
The fund is actively recruiting new participants. In this case, Ackman is paying particular attention to his audience on the social network X. The businessman’s network has around 1.2 million subscribers, some of whom are already interested in joining the project.
The listing is still in the consultation phase. The company said it could take place in 2025 or 2026, but the exact date is still unknown. Several investment firms may participate in the IPO, including Man. The latter is a hedge fund that manages nearly USD 176 billion in assets. Analysts have estimated its market capitalisation to be in USD.
Ackman notes that Pershing Square’s business structure is more similar to that of Ares and Blue Owl. At the same time, the capital of the designated funds exceeds the valuation of the hedge fund:
– Ares Management has USD 428 billion in assets under management. Its market capitalisation is more than USD 44 billion;
– Blue Owl’s assets are worth USD 174 billion, with a market capitalisation of almost USD 28 billion.
Ackman hopes the new fund will allow the firm to raise capital and expand its operations.
Fund overview
Pershing Square was founded in New York City in 2004. Its initial capital came from Bill Ackman’s funds and investments from Leucadia National. This hedge fund is different from other organisations of its kind. For example, Ackman hires people with no financial background. His team includes a professional tennis player, a taxi driver and others.
The fund raises capital using activist strategies. Pershing has used this approach for McDonald’s, Herbalife, Wendy’s, and other companies.
In 2023, the fund made USD 200 million after closing a short position in Treasuries. It took less than three months to open and close the position. The firm cited geopolitical risks as the reason for closing the trade.
