April 28 (Reuters) - Bill Ackman's Pershing Square has raised $5 billion for its new closed-end fund that is part of a combined U.S. initial public offering of the alternative asset management company, the firm said on Tuesday.
The IPO marks the realization of Ackman's long‑held dream of a flagship fund listed in New York. The new vehicle is Pershing Square's first fund without performance fees marketed to both U.S. institutional and retail investors.
Ackman previously tried taking the new fund, Pershing
Square USA (PSUS), public in 2024 but pulled the IPO days before its New York debut as demand was less than initially expected.
Pershing Square USA and Pershing Square will begin trading on the NYSE under the symbols "PSUS" and "PS," respectively, on Wednesday.
Family offices, pension funds, insurance companies, and high-net worth investors had lined up to grab a piece of Ackman's investment prowess some 22 years after he founded his hedge fund Pershing Square Capital Management in New York.
Reuters had reported on Monday that the IPO was oversubscribed, with more than 85% of orders coming from institutional investors.
Pershing's IPO comes as Elon Musk's SpaceX is preparing for what could be the largest initial share sale in history, with the rocket maker expected to launch roadshows in early June.
The new fund is expected to mimic Ackman's existing hedge fund and will invest in 12 to 15 large-cap North American-listed companies.
Ackman cemented his reputation as one of Wall Street's savviest investors by launching campaigns to get prominent companies ranging from Canadian Pacific Railway to Chipotle Mexican Grill to adopt changes.
The closed-end fund IPO market has been largely muted over the past few years. Such vehicles have lost their popularity as they often trade at a discount to the securities they hold.
Ackman sweetened the deal this time by offering bonus shares in his management company. Investors were offered one share in Pershing Square for every five PSUS shares purchased in the IPO.
A successful PSUS IPO could also pave the way for more closed-end investment vehicles from Pershing Square in the future, Ackman has said.
Citigroup, UBS Investment Bank, BofA Securities, Jefferies and Wells Fargo Securities were the global coordinators and bookrunners for the combined IPO.
(Reporting by Arasu Kannagi Basil in Bengaluru, Carlos Méndez in Mexico City; Editing by Sriraj Kalluvila and Subhranshu Sahu)
