Bill Ackman drastically reduces target for IPO fund.

The billionaire hedge fund manager Bill Ackman has drastically lowered the fundraising target for the initial public offering of his U.S. investment fund, Pershing Square USA. Initially set at USD 25 billion, the target is now between USD 2.5 billion and USD 4 billion. Depending on the outcome of the marketing efforts in the coming days, the total amount could rise to as much as USD 10 billion. In a letter to the investors of his holding company, Pershing Square, which Ackman submitted to the Securities and Exchange Commission, he urgently appealed to supporters to participate in the offering as soon as possible. Ackman emphasized that "this is a moment when you can be very helpful to Pershing Square by participating in the PSUS offering round and placing your order with the banks, the sooner, the better." Interestingly, Pershing Square USA explicitly distanced itself from Ackman's statement in the released communication. Existing investors include, among others, the Boston-based investment manager Baupost Group and the Teacher Retirement System of Texas. Additionally, an unnamed family office with over USD 65 billion in assets has expressed interest in acquiring around 10 percent of the total volume. Ackman also highlighted the importance of U.S. retail investors in the upcoming stock listing, estimating that they will be a "major source of demand drivers." Despite the growing presence on social media, where Ackman has garnered a substantial following on platforms like X (formerly Twitter), Pershing Square has shown restraint in commenting. Many hedge funds have faced difficulties raising capital in recent years. Investors increasingly prefer multi-manager firms and alternative asset managers that invest in infrastructure and private credit. Ackman hopes to gain additional momentum for the fund through his social media presence. Ackman made a special call to investors to submit their orders to the leading banks for the IPO—among them Citigroup, UBS, Bank of America, and Jefferies—as soon as possible. Pershing Square USA will list as a closed-end fund on the New York Stock Exchange, with investments in large publicly traded companies that Ackman and his team consider undervalued. Ackman openly expressed his expectation that the company will trade at a premium compared to the net assets held, to counter concerns about a potential discount. Investors also raised questions about possible risks associated with Ackman himself, described as "key man risk," should the main decision-maker encounter health issues.