Ackman’s I.P.O. Delay
Bill Ackman has had to postpone the I.P.O. of his latest fund due to regulatory scrutiny
Monday will not see the pricing of Bill Ackman’s Pershing Square USA investment vehicle I.P.O. as planned. The delay comes as the S.E.C. reviews a letter that Ackman sent to investors, grabbing headlines.
Background: Pershing Square USA is a closed-end fund aiming to raise funds for Ackman’s concentrated investment strategies. The fund promises permanent capital, with investors having limited options to cash out.
Initial Expectations: Ackman initially targeted a $25 billion I.P.O., setting high expectations for the fund. However, closed-end funds typically struggle to attract investor interest, leading to questions about Ackman’s ambitious goal.
Current Status: Despite the delay, the fund reassured on Friday that the I.P.O. is still moving forward, despite the NYSE initially listing the deal as “postponed.” The status now reads as “pending on a date to be announced.”
Recent Events: On Wednesday, Pershing Square USA filed a letter with the S.E.C. where Ackman shared his expectations for the I.P.O. with shareholders of his hedge fund, Pershing Square Capital Management.
