Bill Ackman Aims to Revive Pershing Square USA IPO After Initial Setback
Bill Ackman: Two people who know about the situation told the British business newspaper that early backers might also be able to buy stock when his main investment vehicle, Pershing Square Capital Management, goes public.
Bill Ackman: The Financial Times reported on Thursday that Ackman, the billionaire head of a hedge fund, wants to fix his botched IPO of Pershing Square USA by giving big bonuses to early investors.
Last month, the 58-year-old tycoon gave up on his plans to list his much-talked-about new fund on the New York Stock Exchange. Investors weren’t interested as much as he had hoped.
There have been new talks between Ackman and the FT about a new format that would give early investors the chance to buy more shares at a set price.
Two people who know about the situation told the British business newspaper that early backers might also be able to buy stock when his main investment vehicle, Pershing Square Capital Management, goes public.
The Financial Times says that a well-known investor on Wall Street wants to bring back the Pershing Square IPO before the end of the year.
Someone who works for Ackman has been asked to reply by The Post.
If someone invests in a “closed-end fund,” they can only get their money back if the fund is sold. That was the original plan for Pershing Square USA.
Forbes says Ackman is worth $9.1 billion. He had originally set a huge investment goal of $25 billion and tried to attract investors by waiving 2% managing fees for the first year of trading.
He promised to put about $500 million from his hedge fund into the new business.
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The goal was to raise enough money to buy large minority stakes in 12 to 15 large North American companies.
But that goal had to be cut by more than 90%, to just $2 billion, before he gave up on the idea.
Ackman is a Harvard graduate who has been very vocal on social media about his support for former President Donald Trump. In June, he sold a 10% stake in Pershing Square Capital Management to investors such as Iconiq Capital in San Francisco and Menora Mivtachim, an Israeli insurance company. The deal was worth $10.5 billion.
That same month, Ackman’s business told the government it was thinking about a deal to buy out Howard Hughes’s real estate company.
His firm owns 38% of the shares in the South Street Seaport company. He’s been getting 16.5% a year from his fund.
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