Finance

Bill Ackman’s IPO of Pershing Square closed-end fund delayed: NYSE

Published

10 months ago

August 2, 2024

Business Finance News

Bill Ackman, founder and CEO of Pershing Square Capital Management.

Adam Jeffery | CNBC

Billionaire investor Bill Ackman is delaying the highly scrutinized listing of Pershing Square’s U.S. closed-end fund, according to a notice on the New York Stock Exchange’s website.

The initial public offering of Pershing Square USA Ltd., with the ticker PSUS, is pending on a date to be announced, according to the website. The deal is likely to price next week, according to a person familiar with the matter.

Ackman is now looking to raise $2.5 billion to $4 billion for the fund, well short of the $25 billion target from a few weeks ago, according to a regulatory filing dated Thursday.

Closed-end funds sell a set number of shares during their IPO, and they trade on market exchanges after their debut. The price of the fund does not necessarily match the shares’ net asset value, so the fund may trade at a premium or a discount.

“There is enormous sensitivity to the size of the transaction,” Ackman said in a July 24 letter to investors that was included in the filing. “Particularly in light of the novelty of the structure and closed end funds’ very negative trading history, it requires a significant leap of faith and ultimately careful analysis and judgment for investors to recognize that this closed end company will trade at a premium after the IPO when very few in history have done so.”

Pershing Square had $18.7 billion in assets under management at the end of June. Most of its capital is in Pershing Square Holdings, a $15 billion closed-end fund that trades in Europe. Ackman is seeking to offer a similar closed-end fund listed on the New York Stock Exchange, a move that could pave the way for an IPO of his management company.

The public listing of Ackman’s fund is seen as a move to leverage his following among Main Street investors after he accumulated more than one million followers on social media platform X, commenting on issues ranging from antisemitism to the presidential election. The publicly traded closed-end fund is expected to invest in 12 to 24 large-cap, investment-grade, “durable growth” companies in North America.

In the roadshow presentation that he made public, Ackman highlighted the challenge in managing traditional hedge funds that investors can yank their money out of any time, which can result in constant fundraising and soothing of investors. The advantage of managing permanent capital is that it makes him more focused on the portfolio and gives him the ability to take a long-term approach in investments.

“If you want to be a long-term investor in businesses, the challenge of managing a portfolio where money can come and might go is significant. Action can have a significant negative impact on one’s returns,” Ackman said.

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What the Trump tax bill means for your wallet

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2 days ago

May 24, 2025

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Treasury Secretary Scott Bessent joins ‘America’s Newsroom’ to discuss a possible 50% tariff on the European Union, a 25% tariff on Apple, possible Senate changes to Trump’s ‘big, beautiful bill’ and the push to modernize the IRS.

President Donald Trump’s “big, beautiful bill” cleared the House and is making its way through the Senate.

Still, critics point out the bill, which is over 1,000 pages, will add trillions to what is already ballooning government debt hovering at $36 trillion and deficits. However, U.S. Treasury Secretary Scott Bessent believes this can be managed.

“We think that we can both grow the economy and control the debt. What’s important, Bill, is that we grow the economy faster than the debt. What I would tell your viewers to focus on, what I am focused on, what Secretary Yellen was focused on is what is the total debt to GDP because we can grow our way out of this,” Bessent said during an appearance Friday on Fox’s “America’s Newsroom” with Bill Hemmer.

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Still, the bill contains several provisions that will benefit American workers and everyday households. FOX Business explains how your money may be affected.

NO TAX ON TIPS

Hardworking Americans won’t have to pay taxes on the tips they make. While this is good for service employees, it may mean lost revenue for the government…continue reading here

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401(k) FOR BABIES & CHILD TAX CREDITS

Typically, you start a 401(k) when you begin working, getting matched contributions from your employer. The bill may expand similar investment vehicles to newborns and other child tax credits…continue reading here.

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SALT

High-tax blue states, such as New York, likely secured a win with a big bump for SALT, a deduction for state and local taxes, previously capped at $10,000…continue reading here

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AUTO LOANS INTEREST FREE

If you own or buy a car made in the U.S. using an auto loan, the interest is on track to be eligible for a deduction…continue reading here.

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MEDICAID SAFE?

Trump made it clear the Medicaid program, which provides basically free health insurance to Americans who meet income requirements, won’t be gutted. Not everyone is convinced…continue reading here

FOOD STAMPS

Changes to food stamps and nutrition assistance, formerly known as SNAP, or the Supplemental Nutrition Assistance Program, are part of the tax bill. Here’s what may change…continue reading here