Bill Ackman New Fund Launches with $25 Billion IPO Goal

Bill Ackman's new fund is making waves in the investment world. The fund is aiming to raise $25 billion through an initial public offering (IPO).

This massive goal is a testament to Ackman's confidence in his investment strategy. Ackman's past success with Pershing Square Capital Management has likely contributed to the enthusiasm surrounding his new fund.

The $25 billion target is a significant increase from the average IPO size, which is typically around $100 million. This suggests that Ackman is looking to make a big splash in the market with his new fund.

Pershing Square is a key player in Bill Ackman's new fund, with a European-listed closed-end fund that has about $15 billion in assets under management as of July 1.

The fund has outperformed the S&P 500 over the last five years, which is a notable achievement.

Pershing Square faces a steep climb to raise $25 billion for the new fund, which would be the largest CEF listed in the United States if successful.

Ackman plans to use his Twitter account to share ideas for the fund once it starts trading, and he has over 1.3 million followers on the platform.

The fund's European-listed counterpart has traded at a 28.7% discount to net asset value, but it's worth noting that waiving fees and Ackman's popularity will likely help him secure most of the funds.

Bill Ackman is a well-known figure in the investment world, often referred to as the heir to Warren Buffett.

He's been successful in accumulating permanent capital, with $19 billion under management, of which 88 percent is considered permanent.

Bill Ackman's investment strategies are emulated by his proposed closed-end fund, Pershing Square USA, which aims to raise up to $10 billion.

This fund will be the largest closed-end equity fund ever, and it will trade on the NYSE.

Ackman's goal is to create a model similar to Warren Buffett's Berkshire Hathaway, where money is invested and reinvested with an unlimited time horizon.

The new fund, Pershing Square USA, will become the U.S. version of Pershing Square Holdings, which trades on the Euronext exchange.

Ackman has reported that 88 percent of his existing fund's capital is permanent, meaning investors can sell their shares if they want their money back.

Bill Ackman's new fund will be structured as a closed-end management fund, raising money through an initial public offering before its shares are traded publicly.

The fund will invest in a select portfolio of 12 and 24 large-capital and "durable growth" core holdings.

Ackman plans to waive a management fee for the first year, and then charge a 2% fee after that, similar to a typical management fee without an additional performance fee.

This fee structure is a notable aspect of the new fund, setting it apart from other investment vehicles.

The IPO filing for Pershing Square USA comes just over three years after another successful IPO for Ackman's SPAC, Pershing Square Tonite Holdings, which raised $4 billion.