Bill Ackman's Pershing Square IPO expected to raise $5 billion: Report

The U.S. initial public offering of Bill Ackman's investment management company and a closed-end fund is expected to raise about $5 billion, a source familiar with the ‌matter told ⁠Reuters ⁠on Monday.

The offering of the Pershing Square ​USA fund, whose investors will receive shares in Pershing ​Square, is "oversubscribed" and has over 85% institutional interest, the source said.

A Pershing Square representative ​declined to comment.


The fund ⁠was expecting ‌to raise between $5 billion ​and $10 billion ​from the IPO and a ⁠private placement, selling shares at $50 apiece.

Pershing ​has said investors in the ​new fund will receive 1 share in Pershing Square for every 5 shares purchased in the new fund as a sweetener.

The fund has secured $2.8 billion ‌in commitments in a private placement from investors including family offices, pension funds, ​and insurance ​companies. They ⁠will receive 1.5 shares in Pershing Square for every 5 shares purchased in the new fund.

The ​offering is expected to price on Tuesday. Bloomberg News was first to report the news.