Bill Ackman’s latest attempt to broaden his investment platform got off to a weak start on Wall Street, with shares in his newly listed fund falling sharply on debut amid subdued investor demand and a scaled-back fundraising effort, according to a report by the Financial Times.
The new closed-end vehicle, Pershing Square USA, opened at $42 before closing at $40.90 on its first trading session, marking an 18.2% decline from its $50 offer price. A related listing, Pershing Square Capital Management, which also debuted alongside the fund, fared slightly better, closing marginally above its opening price.
The dual listing raised around $5bn in total, significantly below earlier ambitions of up to $10bn, and well under a previously mooted $25bn target that was later reduced before being withdrawn.
To support demand, investors were offered a bonus allocation structure – receiving one free share in the management company for every five shares purchased in Pershing Square USA. Even so, participants who took up the incentive were still down roughly 9% on the day.
Market data shows the listing underperformed broader IPO activity, with recent US offerings raising over $50m averaging first-day gains of more than 13%, according to Renaissance Capital.
The debut highlights ongoing investor caution toward closed-end funds, which often trade at a discount to net asset value. By the close of trading, Pershing Square USA itself was already changing hands below its underlying asset value, reflecting persistent scepticism around the structure.
Ackman has previously repositioned his business away from a traditional hedge fund model toward permanent capital vehicles designed to support long-term, concentrated investment strategies. The approach reduces redemption pressure and allows larger, less liquid bets, but has also required sustained investor appetite for listed fund structures.
His flagship London-listed vehicle, Pershing Square Holdings, manages around $16bn in assets but has also traded at a notable discount to NAV, underscoring the challenge of attracting capital into the structure.
The latest listing follows several years of stop-start fundraising efforts. Earlier attempts to launch a US-listed vehicle were abandoned or scaled back significantly after investor interest failed to meet expectations.
Ackman has pitched the strategy as a modern equivalent of a diversified holding company model, drawing comparisons to long-term compounding vehicles such as Berkshire Hathaway. However, investor enthusiasm for the structure has remained uneven.
