(Reuters) – Billionaire Bill Ackman’s Pershing Square Capital Management has raised $1.05 billion by selling a 10% stake in the hedge fund to a consortium of institutional investors and family offices, it said on Monday.
The sale is a precursor to a possible initial public offering that could take place next year or in 2026. Investors value the company at $10.5 billion, Reuters reported last week.
Investment company ICONIQ, specialized insurer Arch Capital Group (NASDAQ:), investment bank BTG Pactual, Israeli insurer Menora Mivtachim, investment manager Consulta and an international group of family offices participated in the financing.
“This new investment will help accelerate our growth in assets under management across existing and new strategies,” said CEO Ackman.
Approximately $500 million of the money raised will anchor Ackman’s new investment portfolio in the United States, which will be listed on the New York Stock Exchange.
The new fund will mimic Ackman’s European-listed hedge fund Pershing Square Holdings, but offer lower fees and faster access to capital.
The rest of the money will be used for funds that Ackman plans to launch.
Pershing Square also established an independent board of directors and reorganized its ownership structure.
It appointed insider Ben Hakim as president of the hedge fund, in addition to serving on Pershing’s investment team. Nick Botta, previously president, will become vice chairman.
The hedge fund has shares in companies such as Google parent Alphabet (NASDAQ:), Chipotle Mexican Grill (NYSE:) and Universal Music Group (AS:).
BofA Securities, Citigroup, Evolve, Jefferies and UBS Investment Bank were the placement agents for the funding round.
