Wednesday, 20 August 2014
Last updated 2 hours ago
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.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note