May 31 (Reuters) - Hedge fund billionaire Bill Ackman is

planning an initial public offering for his investment firm

Pershing Square Capital Management as soon as next year, the

Wall Street Journal reported on Friday, citing people familiar

with the matter.

A booming stock market and economic resilience have spurred

a spate of companies to list their shares and take advantage of

the recovering U.S. IPO market.

As a precursor to a public listing, Ackman is selling a

stake in Pershing Square to investors in a funding round

expected to value the firm at around $10.5 billion, the report

said, adding the deal is expected to close in coming days.

Pershing had $18 billion in assets in February.

According to the Journal's report, Pershing Square has told

potential investors to compare it to asset managers such as

Brookfield Asset Management ( BAM ), which has $925 billion in

assets under management and a market capitalization of $17.5

billion, and Blue Owl Capital, which manages $174

billion and is valued at $27.6 billion, rather than hedge funds.

British hedge fund Man Group ( MNGPF ) has $175.7 billion

under management and a market capitalization of roughly $4

billion.

The firm justified its high valuation to investors by

explaining it expects to manage considerably more money and

eventually earn more in fees, after Pershing Square U.S.A. and

other funds launch, the report said.

Pershing Square did not immediately respond to a Reuters

request for comment.

Earlier in the year, a regulatory filing suggested that

Ackman is launching a new investment portfolio in the United

States that will mimic his existing hedge fund, but offer lower

fees and quicker access to capital.

The offerings could quickly make the new fund popular on

Wall Street, where high fees and regulatory hurdles discourage

some investors from choosing hedge funds.

Pershing Square, which has a publicly listed fund in Europe,

returned 26.7% last year, beating the broader stock market gains

and bouncing back from a loss in 2022.

Founded by Ackman in January 2004, Pershing Square Capital

Management generally invests in roughly a dozen stocks and is

best known for its activist campaigns.