Andrew Bary

Investor Bill Ackman raised $5 billion in the combined initial public offering of a new closed-end equity fund, Pershing Square USA, and his management company, Pershing Square Inc., according to a press release.

The size of the deal was at the low end of a $5 billion to $10 billion range.

The shares of both companies are expected to begin trading on the NYSE on Wednesday. The closed-end fund, Pershing Square USA, will trade under the ticker PSUS, and the management company, Pershing Square Inc., under the ticker PS.

Ackman's firm didn't say in the release how many shares were sold in the deal, but the $5 billion size suggests that it sold 100 million shares at $50 of Pershing Square USA, the closed-end fund.

The firm didn't plan to raise any funds from the offering of the management company. Instead, shares of Pershing Square Inc. were offered as a bonus to buyers of the new closed-end fund. Buyers of the Pershing Square USA public offering received one share of the management company for every five shares of the closed-end fund.

A separate group of investors who earlier committed to purchase about $2.7 billion of Pershing Square USA got a better deal -- they received 1.5 shares of the management firm for every five shares of the closed-end fund.

The IPO of the management company amounts to a direct listing, with the price of the stock to be determined in the open market when it begins trading Wednesday. There are about 400 million total shares outstanding of Pershing Square Inc.

Only a fraction of those shares were offered to buyers of the closed-end fund -- Barron's estimates that figure at around 25 million shares.

Pershing Square USA is likely the largest closed-end U.S. equity fund. A closed-end fund issues a fixed number of shares which then trade publicly -- either at a premium or discount to the fund's portfolio value or net asset value depending on investor demand.

Pershing Square said it sold $5 billion in the combined offering before deducting various underwriting expenses.

Write to Andrew Bary at andrew.bary@barrons.com

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April 29, 2026 09:02 ET (13:02 GMT)

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