Written by Svea Herbst-Bayliss
(Reuters) – The New York Stock Exchange announced on Friday that the launch of billionaire investor Bill Ackman’s new U.S. fund, Pershing Square USA, has been postponed, with no explanation provided.
The initial public offering, originally scheduled to price on Monday, is now listed as “pending on a date to be announced,” as stated on the exchange’s website late Friday.
Ackman’s firm confirmed that the IPO is still moving forward, with hopes for pricing to take place by late next week or early the following week, according to a source familiar with his plans.
“Pershing Square USA. Ltd. is proceeding with its initial public offering (the ‘IPO’) of its common shares of beneficial interest (the ‘Common Shares’) with the date of pricing to be announced,” Ackman’s firm stated, echoing the exchange’s announcement.
No specific reason was provided for the delay.
This delay is the latest challenge for the offering, following Ackman’s request for investors to contribute funds and the revelation that the fundraising would be significantly less than originally anticipated.
Pershing Square USA, Ackman’s first new fund in ten years, was initially expected to raise up to $25 billion in new capital, doubling his assets under management. However, Ackman recently announced that fundraising would be capped at $10 billion, with a target of $2.5 billion to $4 billion.
These revised figures were disclosed in a letter to investors that was meant to be private but was made public in a Securities and Exchange Commission filing on Thursday.
Ackman, known for his active presence on social media, expressed hope that retail investors would find the offering appealing alongside institutional shareholders. He mentioned that a large pension fund and a prominent mutual fund had already committed to the fund.
However, potential shareholders raised concerns about the fund’s structure, investment timelines, and decision-makers, as acknowledged by Ackman.
Since January, Pershing Square Holdings, Ackman’s closed-end fund, has returned 6.4%.
Over the past two decades, Ackman’s hedge fund has delivered a 16.5% annual return. He stated that Pershing Square USA would have achieved a 19.4% return during that period, outperforming the stock market index by 9.3 percentage points per year, as highlighted in a video aimed at attracting investors to the offering. Additionally, he mentioned a 31% return over the last 6-1/2 years in the video.