Billionaire Bill Ackman's Pershing Square Capital Management said Monday it has secured $1.05 billion by offloading a 10% stake in the hedge fund to a mix of institutional investors and family offices.
This move sets the stage for a potential initial public offering (IPO) that could occur as early as next year or in 2026, with the firm currently valued at $10.5 billion, according to a previous report by Reuters.
The stakeholders in this investment round include investment firm ICONIQ, specialty insurer Arch Capital Group (NASDAQ:ACGL), investment bank BTG Pactual, Israeli insurer Menora Mivtachim, investment manager Consulta, and a global consortium of family offices.
"This new investment will help accelerate our growth in assets under management in existing and new strategies," CEO Ackman said.
Pershing Square intends to use approximately $500 million from the raised funds to support Ackman’s new investment initiative in the United States, which aims to replicate the structure of his Europe-listed Pershing Square Holdings, albeit with lower fees and improved liquidity. This new fund is slated for listing on the New York Stock Exchange (NYSE).
The remaining funds are earmarked for the development of additional funds Ackman wants to launch.
In parallel, Pershing Square has also established a new independent board of directors and a revised ownership structure. The firm has promoted insider Ben Hakim to president, while former president Nick Botta will take on the role of vice chairman.
Pershing Square maintains significant investments in major corporations such as Alphabet (NASDAQ:GOOGL) Chipotle Mexican Grill (NYSE:CMG), and Universal Music Group.