(Reuters) – Hedge fund billionaire Bill Ackman is planning an initial public offering for his investment firm Pershing Square Capital Management next year, the Wall Street Journal reported on Friday, citing people familiar with the matter.
A booming stock market and economic resilience have spurred many companies to list their shares and take advantage of the recovery in the US IPO market.
As a precursor to a public listing, Ackman is selling a stake in Pershing Square to investors in a financing round that is expected to value the company at around $10.5 billion, according to the report, adding that the deal is expected to close in the following days.
According to the Journal report, Pershing Square has told potential investors to compare it to asset managers such as Brookfield Asset Management (TSX:) and Blue Owl Capital rather than hedge funds.
The company justified its high valuation to investors by explaining that it expects to manage considerably more money and eventually earn more in fees, after the launch of Pershing Square USA and other funds, according to the report.
Brookfield has more than $925 billion in assets under management, while Blue Owl manages more than $174 billion. Pershing manages $18 billion in assets.
Pershing Square did not immediately respond to a Reuters request for comment.
Earlier this year, a regulatory filing suggested that Ackman is launching a new investment portfolio in the United States that will mimic his existing hedge fund, but offer lower fees and faster access to capital.
The offerings could quickly make the new fund popular on Wall Street, where high fees and regulatory hurdles discourage some investors from choosing hedge funds.
Pershing Square, which has a publicly traded fund in Europe, returned 26.7% last year, outpacing overall stock market gains and recovering from a loss in 2022.
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