Pershing Square Nets $2.2 Billion For Listed Hedge Fund

Nov 30 2012 | 12:23pm ET

Investors have backed Pershing Square Capital Management's planned permanent capital vehicle with more than $2 billion in commitments, the New York-based hedge fund said.

More than 120 investors have pledged $2.2 billion for the listed fund, Pershing Square Holdings, the firm wrote to clients. Most of the money will be provided by current Pershing Square investors, who plan to convert some or all of their holdings in Pershing Square funds into shares of PSH, Bloomberg News reports.

The first round of commitments leaves Pershing Square less than $1 billion away from the $3 billion minimum it needs to list on the London Stock Exchange. No date for that initial public offering has been specified.

Earlier this year, Pershing Square said it hoped to raise at least $4 billion for the fund and that it could debut as soon as January.

"Our principal goal in launching PSH was to convert existing capital to an eventual permanent form," William Ackman, founder of the $11 billion hedge fund, wrote. "With more stable capital, we can increase the proportion of our capital in the core active investment strategy which has historically generated much higher returns than our passive holdings."

Ackman said a majority of the early commitments came from U.S. investors, but Pershing Square plans to push hard for more offshore assets, which it hopes will make up a "substantial majority" of PSH investors.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…