Billionaire investor Bill Ackman is preparing a fresh push to raise $5 billion for a new U.S.-listed closed-end fund, marking one of his most ambitious fundraising efforts in recent years. The move is expected to run in parallel with the planned initial public offering of Pershing Square Capital Management, his hedge fund firm. According to people familiar with the matter, both offerings could reach the public markets as early as the first quarter of 2026.
Of the targeted capital, roughly $2 billion is expected from major institutional investors who would commit early and anchor the offering. In a strategic incentive, investors who participate in the new fund would also receive free shares in Pershing Square Capital, with the firm’s partners prepared to allocate up to 10% of their personal equity toward the bonus.
The revival of this closed-end fund plan follows a previous attempt in 2024, which was withdrawn after failing to secure sufficient investor commitments for what was then envisioned as a significantly larger raise.
Fund Structure and Investment Strategy
The new vehicle is expected to mirror Pershing Square’s longstanding strategy of concentrated, long-horizon investments in large-cap companies. However, its structure is being adjusted to increase accessibility and broaden appeal. The closed-end fund will feature lower management fees, faster investor entry, and fewer restrictions than a traditional hedge fund.
The initiative represents a shift toward democratizing access to Bill Ackman’s investment approach. Unlike hedge funds, typically limited to ultra-high-net-worth individuals and institutional investors, the proposed closed-end fund would be available to a wider pool, including retail investors. This could significantly expand Ackman’s investor base.
Pershing Square currently manages around $21 billion in assets, with a large share held through a London-listed closed-end vehicle. The new U.S. offering is intended to complement that structure and potentially elevate Pershing Square’s visibility within public markets.
The earlier version of the fund, once expected to raise as much as $25 billion, was withdrawn in mid-2024 after receiving lukewarm interest. The redesigned offering, smaller in scale and enhanced with equity incentives, appears crafted to address concerns that may have hindered the earlier attempt.
Market Challenges and Strategic Motive
The dual listing strategy signals Ackman’s long-term ambition: strengthening Pershing Square’s public footprint while securing diversified, stable funding for new investments. Offering investors a direct stake in the firm could help align interests and boost the company’s valuation, particularly as management fees and long-term performance incentives scale with AUM growth.
However, the plan enters a competitive funding environment. Closed-end funds have lost ground to exchange-traded funds and open-ended mutual fund structures that offer greater liquidity and lower costs. Market volatility, interest-rate uncertainty, and shifting investor sentiment may also influence the viability of both IPOs in 2026.
Still, the redesigned terms, especially the bonus of firm equity, suggest that Bill Ackman is attempting to reshape the appeal of the product and create a compelling alternative to the dominant passive-investment landscape.
A final decision on the timeline is still developing, but early indications point to the first quarter of 2026 as the most likely launch window. Pershing Square representatives have not commented publicly on the ongoing preparations.
