Billionaire Bill Ackman‘s Pershing Square is reportedly on the verge of raising $5 billion for his new closed-end fund, Pershing Square USA, which is part of a combined initial public offering.
The fund will trade under the ticker PSUS, with shares priced at $50 each. Pershing Square Inc. will also start trading on Wednesday under the ticker PS. Initially, the company aimed to raise between $5 billion and $10 billion, but later settled on a $5 billion target, according to Reuters.
Investors in the new fund will receive 1 Pershing Square share for every 5 shares they buy in the new fund.
The offering was oversubscribed, with institutional investors accounting for over 85% of orders, as per the report.
Cornerstone investors are anticipated to provide $2.8 billion of the total $5 billion. Their investments will be locked in for six months, and they will receive 1.5 Pershing Square shares for every 5 shares they buy in the new fund.
Pershing Square did not immediately respond to Benzinga‘s request for comments.
Ackman Revives IPO, Targets UMG Deal
In March, Ackman’s Pershing Square filed for U.S. IPOs of his hedge fund and a new fund. The transaction featured a dual listing structure, with both Pershing Square Capital Management's common shares and Ackman's new fund, Pershing Square USA, listed on the NYSE. This move came after a scrapped attempt to take Pershing Square USA public in 2024.
Earlier this month, Pershing Square offered to buy Universal Music Group N.V. (OTC:UNVGY) in a cash-and-stock deal worth around $64.4 billion. This proposed acquisition is expected to be completed by year-end. The deal would see Pershing's SPARC Holdings merge with UMG, and the new entity would become a Nevada corporation listed on the New York Stock Exchange.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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