Bill Ackman's Pershing Square sells 10% stake for $1.05 billion to investors

By Louis Goss

Pershing Square Capital Management on Monday said it has sold off a 10% stake in itself to a consortium of investors for $1.05 billion, following reports its founder Bill Ackman is preparing to float the hedge fund on public markets as soon as next year.

In a statement, Pershing Square said it had struck a deal with a consortium of international family offices and other investors to sell a 10% stake in a newly-formed company, called Pershing Square Holdco, that owns 100% of the hedge fund's shares.

The Wall Street Journal on May 31 reported Pershing Square was closing in on a deal to sell off a stake in itself as a precursor to an initial public offering that could happen as early as next year.

Under the deal, a consortium made up of Bermuda reinsurer Arch Capital Group (ACGL), Brazilian bank BTG Pactual (BR:BPAC11), London investor Consulta Limited, San Francisco investor ICONIQ Investment Management, and Israeli insurer Menora Mivtachim will take a 10% stake in Pershing Square.

"We are delighted to invite a group of world-class, long-term partners as investors in our business, which has been entirely owned by Pershing Square employees since our inception more than 20 years ago," Ackman said in a statement.

"This new investment will help accelerate our growth in assets under management in existing and new strategies. As always, Pershing Square will remain intensely focused on generating high, long-term returns for our investors," Ackman said.

Pershing Square, which is headquartered in New York City, was started by Ackman in 2004 and currently has around $16.3 billion in assets under management, having posted a bumper performance that saw it generate returns worth $12.3 billion in the three years ending in 2023.

The agreement values Pershing Square at $10.5 billion amid speculation Ackman is seeking to float the hedge fund on public markets in order to capitalize on his newfound social media fame which has seen him gain prominence for his views on politics.

Ackman became a vocal opponent to the pro-Palestine protests on U.S. campuses in the wake of Hamas' attack on Israel on October 7, 2023, and has voiced his opposition towards the diversity, equity, and inclusion movement on the social media platform X, formerly Twitter.

-Louis Goss

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

06-03-24 0806ET

Copyright (c) 2024 Dow Jones & Company, Inc.