The initial public offering target for Bill Ackman‘s U.S. investment fund, Pershing Square USA, has been drastically reduced by as much as 90%. This comes as the CEO’s comments are disavowed by the fund.

What Happened: Ackman, a prominent billionaire hedge fund manager, has cut the fundraising goal for the IPO of his U.S. investment fund, Pershing Square USA, by up to 90%, the Financial Times reported on Thursday. The initial target of $25 billion has been significantly reduced.

In a letter filed with the Securities and Exchange Commission, Ackman stated that he anticipates raising between $2.5 billion and $4 billion, with the possibility of increasing to $10 billion based on marketing efforts.

In a letter to investors in his Pershing Square holding company sent on Wednesday, Ackman urged, “This is a moment when you can be very helpful to Pershing Square by participating in the PSUS offering and giving your order to the banks, the sooner the better.”

However, Pershing Square USA “specifically disclaims” Ackman’s statement in the filing that included the letter.

Despite this, the fund has already received orders from investors, including the Baupost Group, the Teacher Retirement System of Texas, and a family office with over $65 billion in assets.

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Ackman also highlighted the role of U.S. retail investors in the IPO, anticipating them to be a “huge source of after-market demand.”

Why It Matters: Ackman’s decision to reduce the IPO target comes after a series of events that have put him in the spotlight. This includes his use of social media to attract potential investors, his endorsement of former President Donald Trump, and his public admiration for his “unofficial mentor” Warren Buffett.

In recent years, many hedge funds have struggled to raise capital, with investors favoring a select group of multi-manager firms and alternative asset managers focused on infrastructure and private credit.

It is also worth noting that Pershing Square USA is a closed-end fund set to be listed on the New York Stock Exchange, investing in large, publicly traded stocks that Ackman and his team believe are undervalued. Ackman had previously informed investors that he expected the company to trade at a premium compared to the net assets it held.

Despite the reduction in the IPO target, Ackman remains optimistic about the fund’s potential, particularly with the involvement of U.S. retail investors and the support of institutional investors.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote