Bill Ackman Selling Stake in Pershing Square at $10.5 Billion Valuation, Aiming for IPO One Day
In a bold move, billionaire investor Bill Ackman is selling a 10% stake in Pershing Square, with the goal of eventually taking his investment firm public. The funding round, which is raising $1.05 billion, values the management company at $10.5 billion, according to a source familiar with the matter. Investors involved in the deal include institutional and family offices who have chosen to remain anonymous.
Ackman, who serves as the CEO of Pershing Square, has not officially started the process for an initial public offering in the U.S. yet but is considering it as a future possibility. Two years ago, he appointed Ryan Israel as the chief investment officer, marking the first time he has delegated day-to-day investing responsibilities within the firm.
With $18.6 billion in total assets under management as of April, Pershing Square is primarily invested in Pershing Square Holdings, a closed-end fund that is traded on European stock exchanges. Ackman’s decision to potentially go public comes after years of successful market returns and high-profile activist campaigns, making him one of the world’s most renowned hedge-fund investors.
Earlier this year, Ackman revealed plans to launch a publicly traded closed-end fund on the New York Stock Exchange, focusing on large-cap, investment-grade companies in North America. Despite only holding six stocks at the end of March, including Alphabet and Chipotle Mexican Grill, Ackman’s hedge fund saw a 26.7% gain last year.
In 2022, Ackman made the decision to step away from activist short selling, a practice that famously pitted him against Herbalife in a Wall Street showdown. As he continues to make strategic moves within Pershing Square, Ackman’s potential IPO could mark a new chapter in the firm’s storied history.
