Bill Ackman plans Pershing Square IPO
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Billionaire Bill Ackman is planning an initial public offering of his firm Pershing Square, a move that would make it one of the few hedge funds listed on public markets.
An IPO in New York could happen as soon as the end of next year, according to a person familiar with the matter.
Ahead of a potential float, Pershing Square is finalising the sale of a 10 per cent stake in the firm that would value it at $10.5bn, the person said. Pershing is owned by Ackman and 17 other partners in the firm.
The new valuation would increase Ackman’s net worth by more than $4bn and would make Pershing’s chief investment officer Ryan Israel a billionaire, the person said.
Ackman made his name as an activist investor, taking stakes in companies from retailer JCPenney to Canadian Pacific Railway, and aggressively pushing for change. In recent years, the hedge fund manager has adopted a more conciliatory approach and sought to work behind the scenes with companies.
Pershing Square now owns a concentrated group of stocks that included Alphabet, Hilton Worldwide Holdings and Chipotle Mexican Grill at the end of the first quarter, according to regulatory filings.
About half the money Pershing is attempting to raise through the stake sale will go towards the launch of a closed-end fund in the US, Pershing Square USA, later this year. The rest will support the launch of future funds.
Ackman already has a closed-end investment fund that trades on the London Stock Exchange and on the bourse in Amsterdam.
Pershing Square declined to comment. Pershing Square’s plan to sell a stake and eventually go public were first reported by the Wall Street Journal.
The news comes after the Financial Times reported that Ackman is leaning towards backing Donald Trump in the US election, according to a person briefed on his thinking.
Ackman, who has led a vocal campaign against US university bosses he claims have tolerated anti-Jewish discrimination on campuses, had previously indicated that he was considering switching his support to Trump.
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