Proactive Investors - Bill Ackman’s Pershing Square (NYSE:SQ) Capital Management has sold a 10% common equity interest in its holding company for $1.05 billion to a consortium of strategic investors.
It gives the hedge fund a $10.5 billion valuation as it reportedly prepares for an initial public offering (IPO).
The investors included Arch Capital Group, BTG (LSE:BTG) Pactual, Consulta Limited, ICONIQ Investment Management and Menora Mivtachim Holdings.
Founder and chief executive Ackman said the new investment “will help accelerate our growth in assets under management in existing and new strategies.”
Rumours of the funding round began circulating last Friday following a Wall Street Journal report, which also unveiled Pershing’s plans to go public by 2026.
The IPO could garner substantial support from his sizeable social media followership, which currently numbers 1.2 million on X alone, who tune in for his partisan, pro-Trump approach to political commentary.
In conjunction with the transaction, PSCM is undergoing an internal reorganization of its ownership structure which will result in the voting securities of Pershing Square being indirectly owned by a limited liability company controlled by senior management, including Bill Ackman.
Pershing called the reorganization “a technical one… to minimize the likelihood of any future deemed assignment, an issue that was important to resolve in connection with the strategic sale transaction.”