Billionaire Bill Ackman is launching a new publicly traded investment fund called Pershing Square USA.

From Nasdaq: 2024-07-12 06:21:00

Billionaire investor Bill Ackman is launching a new publicly traded investment fund called Pershing Square USA through a pre-IPO roadshow. The IPO price for the fund will be $50 per share with a minimum investment of $5,000. The fund will have no assets initially, except for covering IPO expenses.

Pershing Square USA will not be tied to Ackman’s existing Pershing Square hedge fund. The new closed-end fund will charge a 2% management fee, waived for the first 12 months. It aims to provide quicker access to capital for investors and offer lower fees than traditional hedge funds, catering to all investors.

Ackman plans to apply Pershing Square’s investment principles to Pershing Square USA, focusing on businesses with strong free cash flow, high barriers to entry, and attractive valuations. The fund will build a concentrated portfolio of 12-15 large-cap stock holdings to drive asymmetric payoff structures with limited downside risk.

The timing and size of the Pershing Square USA IPO are yet to be determined, although the roadshow has commenced. The fund could potentially go public before the end of July, with an estimated total initial offering size of $10 billion. Ackman has committed to investing $500 million of the firm’s capital alongside investors.

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