Bill Ackman to sell stake in Pers- Square for $10.5 billion valuation, eyeing eventual IPO

Billionaire investor Bill Ackman is making moves to sell a 10% stake in his investment firm Pershing Square, with plans to eventually take the company public. The firm is raising $1.05 billion in a funding round, valuing the management company at $10.5 billion. Investors on the deal are institutional and family offices who have chosen to remain anonymous.

According to sources, Ackman is eyeing an eventual initial public offering in the U.S., although he has not officially started that process yet. Two years ago, he appointed Ryan Israel as Chief Investment Officer, the first time he has chosen someone else to run day-to-day investing for the firm. Ackman remains the CEO, with ultimate control over decision-making, but has indicated that Israel would be his successor if needed.

Pershing Square currently has $18.6 billion in total assets under management, with most of its capital in Pershing Square Holdings, a closed-end fund that trades on European stock exchanges. Ackman has gained prominence as a hedge-fund investor through years of market-topping returns and vocal activist campaigns. He maintains a significant social media following on platforms such as X, where he comments on a variety of issues.

This year, Ackman announced plans to offer a new investment vehicle listed on the New York Stock Exchange. The publicly traded closed-end fund will invest in 12 to 24 large-cap, investment-grade, “durable growth” companies in North America. Ackman’s hedge fund held only six stocks at the end of March, including Alphabet, Chipotle Mexican Grill, and Hilton Hotels, and posted a 26.7% gain last year.

In 2022, Ackman decided to stop engaging in activist short selling, a practice that led to a high-profile battle against Herbalife. His decision to move away from this strategy reflects his continued evolution as an investor. Ackman’s success and reputation have made him a significant figure in the finance industry, known for his market insights and bold investment decisions.