Bill Ackman, a giant in the hedge fund industry, plans to raise $5 billion for a new fund and is set to IPO alongside Pershing Square next year.

According to two informed sources, renowned hedge fund manager Bill Ackman plans to raise $5 billion for his newly formed closed-end fund listed in the United States, with $20 billion to be anchored by well-known institutional investors. The fund will launch its initial public offering (IPO) simultaneously with his Pershing Square Capital Management company. This billionaire investor is known for his aggressive investment style, having pushed for reforms in multiple companies, from Chipotle Mexican Grill (CMG.US) to the railroad company Canadian Pacific (now renamed Canadian Pacific Kansas City). This time, he will launch his first new fund in years, and plans to give investors the opportunity to share ownership in his successful hedge fund. The closed-end fund was originally planned to go public last year, expected to replicate Ackman's existing hedge fund investment strategy, but with lower fees and more accessible funding channels. This will make it attractive to a wide range of investors, including pension funds, charitable funds, and individual investors who are typically excluded from hedge funds. Sources say that the IPO of this closed-end fund will be synchronized with Pershing Square's IPO, and both transactions are expected to be completed in early 2026. Sources also added that investors in the new fund will receive free shares of Pershing Square as an additional incentive. As part of the dual-listing plan, company partners will also sell up to 10% of their stakes. However, they caution that the plans are still being negotiated and may be adjusted based on market conditions. More details are expected to be revealed in early December, when the company will hold a briefing for industry analysts. A spokesperson for Pershing Square declined to comment on this. It is reported that Ackman laid the foundation for this closed-end fund as early as the beginning of 2024, but canceled the launch of Pershing Square USA in July 2024just days before the fund was scheduled to be listed on the New York Stock Exchange. Initially aiming to raise as much as $25 billion, the fund was set to become one of the largest IPOs in years. However, Ackman subsequently revised the issuance target multiple times, eventually delaying the listing due to only raising around $2 billion. Closed-end funds typically face challenges in fundraising as their secondary market trading prices are lower than their net asset valuespotential investors often wait to buy at a discount after listing. Therefore, this innovative transaction structurethrough giving shares of the parent companyis aimed at overcoming this challenge. Last year, Ackman sold 10% of Pershing Square in a private transaction, valuing the company at over $10 billion. Since then, the company's business portfolio has continued to expand, and its valuation has soared. In May of this year, as part of a plan to build an insurance company and transform a real estate company into a diversified holding group, Pershing Square agreed to increase its stake in Howard Hughes (HHH.US) to nearly 47%. Ackman likened this model to Warren Buffett's Berkshire Hathaway (BRK.A.US)where holding insurance companies provides low-cost capital for its investment business. Additionally, Ackman plans to establish a hedge fund focused on "asymmetric trades", where initial investments are limited but potential returns are huge, a strategy that previously led to brilliant results for Pershing Square. In February 2020, Ackman purchased a credit protection tool issued by a Wall Street bank, which would pay out if corporate bond prices fell, to hedge against the impact of the predicted COVID-19 pandemic on the US and global economies. He invested $27 million for this, and just three weeks later received a return of 100 times his investment. Currently, the institution manages assets of around $21 billion, with the majority invested in the London-listed closed-end fund Pershing Square Holdings. The fund has achieved a return rate of 17.2% this year, and has delivered double-digit returns in 2023 and 2024. Industry analysts and investors point out that in recent years, Ackman's statements on the social media platform X are almost as well-known as his investment performance. This fund manager has around 1.8 million followers on X, and frequently expresses opinions on topics such as political elections, higher education, the dangers of sugary foods, and recently shared dating advice content.