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

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note