Credit: Envato Elements
The New York Stock Exchange announced today that the initial public offering (IPO) of Pershing Square USA Ltd., a U.S. closed-end fund developed by billionaire investor Bill Ackman, is delayed. The fund, set to trade under the ticker PSUS, has postponed its listing date, which will be announced later.
Originally, the IPO was expected to price next week, but new developments have shifted the timeline. According to a recent regulatory filing, the fund is now aiming to raise between $2.5 billion and $4 billion, a reduction from the initial $25 billion target set a few weeks prior.
Closed-end funds, like the one Ackman proposes, sell a fixed number of shares during an IPO and trade on market exchanges afterward. The trading price can diverge from the net asset value of the shares, resulting in premiums or discounts.
Bill Ackman noted the unique challenges of this IPO in a July 24 letter to investors. “Given the novelty of the structure and the generally negative trading history of closed-end funds, launching this IPO requires careful judgment and analysis,” Ackman wrote. He emphasized the rarity of closed-end funds trading at a premium post-IPO and expressed hope that Pershing Square USA Ltd. would defy these odds.
Pershing Square currently manages $18.7 billion in assets, with its largest fund, Pershing Square Holdings, valued at $15 billion and trading in Europe. The new fund listed on the NYSE aims to mirror this structure, potentially setting the stage for an IPO of Pershing Square’s management company.
The fund plans to invest in 12 to 24 large-cap, investment-grade “durable growth” companies across North America. Ackman’s strategy focuses on the benefits of managing permanent capital, which he argues allows for a more long-term, focused investment approach free from the pressures of traditional hedge funds.
