Ackman's Awaited Fund Offering Facing Delays

Pershing Square USA, a closed-end fund, is raising money for Ackman's concentrated investments. The fund had faced high expectations with an initial $25 billion IPO target, one of the biggest in history. However, the IPO pricing has been delayed as the SEC reviews Ackman's letter to investors. The fund would have permanent capital, as investors can only cash out if someone else buys their stake. The New York Stock Exchange now describes the offering as "pending on a date to be announced". Ackm..

Billionaire investor William Ackman's Pershing Square USA aims to raise $2 billion in an I.P.O. on the N.Y.S.E. next week, down from earlier $10 billion and $25 billion targets discussed in investor meetings, according to a regulatory filing. The I.P.O. has faced delays due to an S.E.C. review of a letter Ackman sent to existing investors. Ackman is scheduled to ring the N.Y.S.E. bell before trading in the stock kicks off, but timing could still slip, per a person familiar with the deal.

Ackman has argued that if funds can own Berkshire, an investment holding company, they should be able to invest in his PSUS fund, which will use derivatives for synthetic shorts. However, some large mutual fund complexes like Capital Group have passed, despite Ackman's Buffett comparison. The SEC has delayed approving the PSUS fund.