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Closed-end fund could raise $5 billion in assets

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Listing is expected to happen at the same time as IPO for

hedge

fund firm

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Ackman has delivered strong returns, known for musings on

X

(Adds details about fund manager's plans, new throughout)

By Svea Herbst-Bayliss

Nov 25 (Reuters) - Hedge fund manager Bill Ackman aims

to raise $5 billion for a new U.S.-listed closed-end fund that

will debut at the same time he plans to list his hedge fund

firm, Pershing Square Capital Management, according to two

people familiar with the matter.

The billionaire investor, who cemented his reputation as an

activist investor by pushing companies ranging from Chipotle

Mexican Grill ( CMG ) to railroad Canadian Pacific that is now

called Canadian Pacific Kansas City ( CP ), is starting his

first new fund in years and plans to let investors own a piece

of his successful hedge fund.

The closed-end fund, first prepared for a listing last year,

is expected to mimic Ackman's existing hedge fund but offer

lower fees and quicker access to capital. This would make it

appealing to a wide pool of investors, including pension funds,

endowments and retail investors who are normally excluded from

hedge funds.

The sources said the initial public offering of the

closed-end fund will occur at the same time as the initial

public offering of Pershing Square Capital Management, and that

both could happen in early 2026.

News of the fundraising target was first reported by

Bloomberg News.

Investors in the new fund would also receive free shares of

Pershing Square as a sweetener, said the people who are not

permitted to discuss the private plans.

The people warned that the plans were still being discussed

and could change depending on market conditions.

A spokesman for Pershing Square declined to comment.

Ackman laid the groundwork for the closed-end fund in early

2024 but scrapped the launch of Pershing Square USA in July

2024, days before it was slated to begin trading on the New York

Stock Exchange.

He downsized the initial public offering plans several times

after people familiar with the matter initially suggested the

fund could raise as much as $25 billion in assets, making for

one of the biggest IPOs in years.

This year Pershing Square bought nearly half of real-estate

firm Howard Hughes.

Pershing Square now has some $21 billion in assets under

management, with the bulk invested in Pershing Square Holdings,

the closed-end fund listed in London. That fund has returned

17.2% since January and posted double-digit returns in 2024 and

2023.

In recent years, Ackman has become almost as famous for his

musings on social media platform X as his investment prowess,

industry analysts and investors have said. On X the fund manager

has some 1.8 million followers and often weighs in on topics

ranging from political races, higher education, the dangers of

sugary foods, and most recently dating advice.