Bill Ackman’s Pershing Square set the initial public offering price of its US closed-end vehicle at $50 per share, as the billionaire’s firm moves ahead with what could be the largest ever closed-end fund in the US.
The vehicle, known as Pershing Square USA Ltd., didn’t mention the number of shares to be sold, nor timing of the offering, in a filing Friday with the US Securities and Exchange Commission.
Pershing Square USA is seeking to raise $25 billion from retail investors, Bloomberg News reported, citing people with direct knowledge of the plans.
Pershing Square already has a European vehicle with a $10 billion market capitalization. Ackman’s fund “returned 50.3% over the past year, outpacing almost all of its US peers, yet trades at a 25% discount to its net asset value,” Bloomberg Intelligence analyst David Cohne wrote earlier this month.
“With lower required costs than his typical hedge fund fees and social media popularity, the US-listed Pershing Square USA Ltd. could become the largest closed-end fund in the country and trade at a premium to its net asset value,” Cohne wrote.
For the US closed-end fund, Pershing plans to charge a 2% management fee, which would be waived for the first 12 months, and no incentive fee, the filing showed.
Citigroup Inc. UBS Group AG, Bank of America Corp. and Jefferies Financial Group Inc. are leading the offering, according to the filing. Pershing Square USA will list on the New York Stock Exchange under the symbol PSUS.
Advisors previously with UBS, Edward Jones head for new firms.
Principal Financial Group’s Teresa Hassara shares data showing account balances rising and Roth adoption accelerating.
Trevor Uhls was charged with wire fraud and money laundering in a criminal complaint filed in U.S. District Court for the Western District of Missouri.
The multigenerational Cedar Rapids firm is joining through a key OSJ as recruiting competition heats up across the wealth space.
New Treasury guidance sets fee caps, defines index-tracking rules, and bars ESG-linked funds from the tax-deferred accounts for minors
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
