Billionaire Bill Ackman has successfully completed a landmark $5 billion combined initial public offering, bringing his hedge fund investment strategy to retail investors for the first time through a newly created closed-end fund.
The dual listing commenced trading on the New York Stock Exchange on Wednesday, April 29, with Pershing Square USA trading under the ticker PSUS and the management company Pershing Square Inc. trading under PS. This transaction represents the largest closed-end fund IPO ever recorded in American financial markets.
The $5 billion raise landed at the low end of the originally targeted $5 billion to $10 billion range and fell far short of the $25 billion Ackman initially envisioned during his first attempt in 2024, which was abandoned due to insufficient investor interest. Institutional investors dominated the offering, accounting for approximately 85% of total orders, with family offices, pension funds, and insurance companies providing the bulk of demand. The total includes a previously disclosed $2.8 billion private placement from anchor investors who agreed to a six-month lockup period.
To attract retail investors, Ackman reduced the minimum purchase from $5,000 to $250 and partnered directly with retail brokerages Robinhood (HOOD) and Charles Schwab (SCHW) to offer shares to their customer bases. A key incentive was the bonus share structure: for every five PSUS shares purchased at $50 apiece, investors received one complimentary share of Pershing Square Inc., while private placement participants received 1.5 shares per five purchased. Ackman emphasized that someone with as little as $50 could become a long-term shareholder, inverting the traditional hedge fund model that serves only wealthy investors.
The fund will concentrate capital in a portfolio of 12 to 15 large-capitalization growth companies traded on North American exchanges, mirroring the strategy used across Pershing Square’s existing operations. Current holdings across the firm’s portfolios include Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), Uber (UBER), Brookfield (BN), Fannie Mae (FNMA), and Freddie Mac (FMCC). Notably, this is Pershing Square’s first investment vehicle that does not charge performance fees, levying only a 2% annual management fee.
Central to Ackman’s pitch is the firm’s exceptional long-term track record, with cumulative net returns exceeding 2,600% since inception in 2004, vastly outpacing the S&P 500 Index’s approximately 836% gain over the same period. The firm’s history of asymmetric macro hedging further bolsters the investment case, highlighted by the legendary 2020 trade where $27 million in credit protection generated approximately $2.6 billion in returns as COVID-19 disrupted markets. Ackman has explicitly modeled the venture on Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B), emphasizing permanent capital that eliminates forced selling during market stress and allows for longer-term compounding.
Following the IPOs, an investment vehicle controlled by Ackman, Chief Investment Officer Ryan Israel, and other executives will maintain voting power over approximately 75% of Pershing Square Inc.’s shares. Pershing Square manages roughly $30.7 billion in total assets under management, with $20.7 billion in fee-paying assets as of year-end 2025. Ackman has indicated that a positive reception for this listing could pave the way for additional closed-end investment products, and he plans to host Berkshire-style annual meetings where shareholders can engage directly with management.
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