"Buy one get one free"! Ackman plans simultaneous IPOs for his hedge fund company and a new fund, with fundraising targets significantly reduced.

Wall Street renowned investor Bill Ackman is attempting to reshape his hedge fund’s public market landscape through a rare dual listing structure. On March 10, billionaire investor Bill Ackman has filed an application, planning to publicly list his hedge fund management company, Pershing Square, alongside a brand-new investment fund, Pershing Square USA. This “dual listing” adopts an innovative structure: Investors who buy shares of the new investment fund will receive shares of the hedge fund company for free. In the latest offering plan, the fundraising target for the new fund, Pershing Square USA, has seen a significant reduction. The fundraising expectation for the fund has been lowered from a grand target of as much as $25 billion to a relatively moderate range of $5 to $10 billion. At present, the fund has secured a total commitment of $2.8 billion. Despite heightened market volatility recently due to geopolitical conflicts, Ackman continues to send strong signals to potential investors. He stated that current macro events have not substantially affected the long-term intrinsic value of quality companies and instead provide a rare opportunity to purchase these assets at significant discounts. What is “dual listing”? To ensure the success of this offering, Ackman has designed a unique “dual listing” structure. Specifically, this dual listing means that the hedge fund management company (Pershing Square) and its managed closed-end investment product (Pershing Square USA) will be simultaneously listed on the public market. Under this structure, Ackman has launched a “buy one, get one free” incentive to the market: Investors who purchase shares of the newly issued closed-end fund Pershing Square USA will receive shares of the hedge fund management company Pershing Square free of charge, without paying extra fees. It is important to note that Pershing Square itself will not receive any direct benefit from this issuance. Historically, publicly traded hedge fund companies are very rare. Market investors typically dislike the unpredictable profits of hedge funds since clients can redeem funds every quarter, which threatens management fee income. Ackman addresses this pain point by locking almost all managed capital into non-redeemable closed-end funds. Additionally, Pershing Square will charge a preferential performance fee when the fund generates at least a 5% annual return, providing the company with relatively stable income expectations. Bottom-fishing logic amid market volatility In a letter to potential investors on Tuesday, Ackman admitted that this year’s market has become highly volatile due to factors like the Iran war. But he emphasized this is precisely the reason to promote the listing and build positions. “Pershing Square has long benefited from these opportunities driven by macro events to buy top-tier companies at cheap prices, while these events do not have a significant impact on their long-term intrinsic value,” Ackman wrote in the letter. “We believe now is one such opportune moment.” Currently, Pershing Square manages about $19 billion in its main investment strategies. Its largest fund is Pershing Square Holdings, listed in London. Influenced by market conditions, the fund recorded a 21% gain in 2025, but this year until February, after fees, it is down about 10%. The new fund, Pershing Square USA, is expected to mainly replicate its core stock-picking strategy, investing in large companies such as Alphabet, Uber, and Universal Music Group. Emulating Buffett’s long-term vision The prospectus reveals Pershing Square’s strong profitability during good times. In 2025, the company earned $763 million in management and performance fees, achieving a profit of $282 million. Ackman himself received $143 million in compensation in 2025. The establishment of the new fund will provide Ackman with more capital to emulate Warren Buffett's long-term investment strategy, instead of the activist investing style that made him famous in his early years. Last month, Ackman disclosed a roughly $2 billion position in Meta Platforms, betting that it will benefit from the proliferation of artificial intelligence. Additionally, he has invested in the real estate company Howard Hughes Holdings and is eager to build it into a diversified holding company similar to Berkshire Hathaway. Risk warning and disclaimer The market has risks; investment requires caution. This article does not constitute personal investment advice, nor does it consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.