"Buy One Get One Free"! Ackman plans to list the hedge fund company and the new fund simultaneously, with a significant reduction in fundraising target

Wall Street’s well-known investor Bill Ackman is attempting to reshape his hedge fund’s public market presence through a rare dual listing structure.

On March 10, billionaire investor Bill Ackman filed an application to simultaneously list his hedge fund management company Pershing Square and a new investment fund, Pershing Square USA, on the public markets.

This “dual listing” employs an innovative structure where investors who purchase shares in the new fund will receive shares in the hedge fund company for free.

In the latest issuance plan, the fundraising target for the new fund, Pershing Square USA, has been significantly reduced. The target has been lowered from an earlier high of $25 billion to a more moderate range of $5 billion to $10 billion. Currently, the fund has received $2.8 billion in total commitments.

Despite recent market volatility driven by geopolitical conflicts, Ackman has conveyed a strong signal to potential investors. He stated that current macro events have not materially affected the intrinsic value of high-quality companies and instead present a rare opportunity to buy these assets at a significant discount.

What is a “dual listing”?

To ensure the success of this issuance, Ackman designed a unique “dual listing” structure. Specifically, this means that both the hedge fund management company (Pershing Square) and its closed-end investment product (Pershing Square USA) will be listed simultaneously on the public markets.

Under this structure, Ackman has introduced a “buy one, get one free” incentive: Investors who purchase shares in the newly issued closed-end fund Pershing Square USA will receive shares in Pershing Square for free, without paying extra. It’s important to note that Pershing Square itself will not receive any direct proceeds from this issuance.

Historically, publicly traded hedge fund companies are rare. Market investors generally dislike the unpredictability of hedge fund profits, as clients can redeem their investments quarterly, threatening management fee income. Ackman’s approach of locking nearly all managed capital into non-redeemable closed-end funds directly addresses this issue. Additionally, when the fund achieves at least a 5% annual return, Pershing Square will charge a preferred performance fee, providing the company with a relatively stable income stream.

Market downturns and bottom-fishing logic

In a letter to potential investors on Tuesday, Ackman admitted that the market has become highly volatile this year due to factors like the Iran war. However, he emphasized that this is precisely the reason to push for listing and building positions.

“Pershing Square has long benefited from opportunities driven by macro events—buying top-tier companies at low prices—without these events significantly impacting their long-term intrinsic value,” Ackman wrote. “We believe now is one of those opportune moments.”

Currently, Pershing Square manages about $19 billion across its main investment strategies. Its largest fund, Pershing Square Holdings, is listed in London. Due to market conditions, this fund gained 21% in 2025 but has fallen about 10% year-to-date after fees through February. The new fund, Pershing Square USA, is expected to replicate its core stock-picking strategy, investing in large companies like Alphabet, Uber, and Universal Music Group.

Long-term vision inspired by Buffett

The prospectus reveals Pershing Square’s strong profitability in good times. In 2025, the company earned $763 million from management and performance fees, with a profit of $282 million. Ackman himself received $143 million in compensation in 2025.

The new fund will provide Ackman with additional capital to emulate Warren Buffett’s long-term investment approach, rather than the aggressive investing that made him famous early in his career. Last month, Ackman disclosed a $2 billion position in Meta Platforms, betting on its benefits from AI proliferation. He also invested in real estate firm Howard Hughes Holdings, aiming to develop it into a diversified holding company similar to Berkshire Hathaway.

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