Asset Classes

Free investment financial education

Language

Multilingual content from IBKR

Close Navigation
Learn more about IBKR accounts

Bill Ackman Plans To Take Pershing Square Public By 2025, Following $10.5B Valuation Deal: Report

Posted May 31, 2024 at 10:00 am
Benzinga
CMG

Bill Ackman is preparing to take his hedge-fund firm, Pershing Square, public by next year.

What Happened:

Ackman is selling a stake in Pershing Square to investors in a funding round, valuing the firm at approximately $10.5 billion. The deal is expected to close soon. As of April, Pershing Square managed about $16.3 billion in net assets, reported The Wall Street Journal on Friday, citing people familiar with the matter.

The firm plans to attract billions more in assets, primarily holding a concentrated portfolio of undervalued large company stocks, including Chipotle Mexican Grill and Universal Music Group.

Public listings of hedge funds are rare, especially after the 2008-09 financial crisis. Ackman aims to take Pershing Square public by late 2025 or early 2026. The firm has been transforming into an asset manager with durable capital, moving away from its activist roots.

Ackman’s social media presence has boosted his profile, and he plans to leverage this to drive investor interest. Half of the $1 billion raised in the pre-IPO round will be invested in Pershing Square USA, expected to launch soon.

Ackman, Pershing Square’s largest shareholder, could see his net worth increase significantly with a successful IPO, aiding in talent retention and succession planning.

Pershing Square did not immediately respond to Benzinga‘s request for comment.

Why It Matters:

The planned IPO comes after a series of strategic moves by Ackman. In May, Pershing Square exited its position in Lowe’s and trimmed its stake in Chipotle Mexican Grill. This portfolio adjustment reflects Ackman’s strategy to focus on high-potential investments.

Earlier in February, Ackman shared insights on his investment philosophy, emphasizing the importance of identifying companies with strong growth potential. His approach has been instrumental in Pershing Square’s performance.

Additionally, a report in April highlighted the dominance of a few hedge funds in the U.S. Treasury market, underscoring the influence firms like Pershing Square wield in financial markets.

Furthermore, Ackman’s public stance on political issues, such as his criticism of President Biden’s arms-freeze warning to Israel amid the Hamas war in May, has kept him in the public eye.

Originally Posted May 30, 2024 – Bill Ackman Plans To Take Pershing Square Public By 2025, Following $10.5B Valuation Deal: Report

Join The Conversation

If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.

Leave a Reply

Disclosure: Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.