Billionaire investor Bill Ackman has made a strategic move by selling a 10% stake in his investment firm, Pershing Square. This sale is part of a larger effort to eventually take Pershing Square public. The firm has successfully raised $1.05 billion in funding, granting investors a 10% ownership share in the management company. This move implies a valuation of $10.5 billion for Pershing Square. The investors participating in this deal mainly consist of institutional and family offices who have chosen to remain anonymous, as reported by The Wall Street Journal. When approached for comment, Pershing Square declined to provide further information.
With the completion of the funding round, Bill Ackman is now setting his sights on an eventual initial public offering (IPO) in the United States. While the process has not officially begun, Ackman has not engaged bankers for this purpose. It’s worth noting that two years ago, Ackman appointed Ryan Israel as the chief investment officer, marking the first time he has entrusted day-to-day investing responsibilities to someone else. Despite this, Ackman remains the CEO with ultimate decision-making authority. However, he has indicated that Israel would succeed him in leading the firm if unforeseen circumstances were to arise.
Pershing Square’s total assets under management stood at $18.6 billion by April’s end, with a significant portion invested in Pershing Square Holdings, a closed-end fund traded on European stock exchanges. Over the years, Bill Ackman has garnered global recognition as a prominent hedge-fund investor, known for generating market-leading returns and advocating for various causes. His social media presence, particularly on platform X with 1.2 million followers, has allowed him to engage with a wide audience on topics like antisemitism and political events.
In a strategic shift earlier this year, Ackman unveiled plans to launch a new investment vehicle listed on the New York Stock Exchange. This move aims to capitalize on his significant following among retail investors. The upcoming publicly traded closed-end fund will focus on investing in 12 to 24 large-cap, investment-grade companies in North America with a focus on sustainable growth. Despite holding a minimal number of stocks, Ackman’s hedge fund delivered a strong performance with a 26.7% gain last year. Notably, in 2022, Ackman decided to exit activist short selling, a practice that had previously sparked intense battles in the financial markets.