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

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9 months ago

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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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SPOT, REGN, HIMS and more

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2 hours ago

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April 29, 2025

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UK announces draft rules for crypto industry, US collaboration

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3 hours ago

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April 29, 2025

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Romain Costaseca | Afp | Getty Images

LONDON — Britain on Tuesday published draft legislation for the cryptocurrency industry, touting greater collaboration with the U.S. as it looks to regulate the wild world of digital assets.

Speaking at a fintech event Tuesday, U.K. Finance Minister Rachel Reeves announced plans for a “comprehensive regulatory regime for crypto assets,” adding that the proposals would aim to make the country a “world leader in digital assets.”

The rules will bring crypto exchanges, dealers and agents into the regulatory fold, “cracking down on bad actors while supporting legitimate innovation,” the U.K.’s Treasury department said in a statement released following Reeves’ remarks.

“Crypto firms with UK customers will also have to meet clear standards on transparency, consumer protection, and operational resilience — just like firms in traditional finance,” the Treasury’s statement added.

Reeves said that the U.K. planned to deepen regulatory cooperation with the U.S. to boost “responsible” adoption of digital assets. “For the U.K. to be a world leader in digital assets, international cooperation is vital,” she told attendees at fintech industry group Innovate Finance’s annual summit.

The U.K. finance minister met with her U.S. counterpart Scott Bessent last week to discuss a trade deal. She had previously said that improving business ties with the European Union was “arguably even more important.”

“Regulation must support business, not hold it back,” Reeves said Thursday.

Crypto industry insiders say the Financial Conduct Authority — which is the U.K.’s financial services watchdog — has been too restrictive when it comes to approving registrations from digital asset firms.

The FCA is the regulator responsible for registering firms that want to provide crypto services within the scope of money laundering regulations in the U.K.

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Treasury Secretary says individual investors trust President Trump

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5 hours ago

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April 29, 2025

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Treasury Secretary Scott Bessent: Individual investors trust President Trump

Treasury Secretary Scott Bessent said Tuesday that individual investors, who have largely been holding their positions through the recent market turmoil, have faith in President Donald Trump’s tariff policy.

“Individual investors have held tight, while institutional investors have panicked … individual investors trust President Trump,” Bessent said during a press briefing alongside White House press secretary Karoline Leavitt.

“Vanguard, one of the largest money management firms in America, said that over the past 100 days, 97% of Americans haven’t done a trade,” Bessent, a former hedge fund CEO, said, citing a Washington Post story with the data.

Trump’s rollout and subsequent suspension of the highest tariffs on imports in generations, fueled the worst sell-off in stocks since the onset of the pandemic in 2020. The S&P 500 briefly tumbled into a bear market before recouping some of the losses, and the equity benchmark is now about 10% off its February all-time high.

During the depth of the April rout, retail investors swooped in to snap up stocks at depressed values. At the same time, hedge funds and professional traders ran for the exit while piling on bearish wagers against the market.

Institutions have grown increasingly worried that steep tariffs will weigh heavily on consumers and slow down the economy, possibly tipping it into a recession.

Torsten Slok, chief economist at Apollo, now sees a summer recession hitting the U.S. as consumers start to see trade-related shortages in stores next month. Ken Griffin, founder and CEO of Citadel, said Trump’s global trade fight risks spoiling the “brand” of the United States and tarnishing the allure of U.S. Treasury debt.

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