Pershing Square Holdings, Bill Ackman’s Amsterdam-based fund, could raise $272 million or more in addition to the $2.7 billion it raised in the IPO if all of the share overallotment is exercised. Initially, the fund had planned to raise $2 billion in the offering.
Investors pile into Bill Ackman’s new fund
According to this morning’s announcement, the fund raised an additional $212.5 billion from current investors who shifted some of their money over to Ackman’s new fund.
In addition, Pershing Square Capital Management, Ackman’s U.S.-based firm, invested another $129 million in the Dutch fund. So far, the total amount of capital Pershing Square Holdings has raised is $3.07 billion. That gives the fund a market capitalization of $6.2 billion, reports Bloomberg.
Shares of the new Dutch fund were priced at $25 each.
Pershing Square prepares for October debut
The new Amsterdam-based fund is scheduled to start trading on the Euronext Amsterdam exchange on Oct. 13. Ackman began the fund in 2012, and it invests next to his other funds, according to The New York Times. However, Pershing Square Holdings will be separate from Pershing Square Capital Management, which currently manages approximately $14.1 billion worth of assets.
Ackman initially considered listing on the London Stock Exchange, and he visited London to drum up support from investors there.
Ackman secures permanent capital pool
By listing on a public stock exchange, Ackman will have more freedom to run his activist campaigns because he won’t have to deal with investor redemptions, thus making the pool of capital more permanent. Instead of pulling their money out of the fund, investors simply sell off their shares.
Ackman is known for targeting companies like Herbalife Ltd. (NYSE:HLF), which he called a pyramid scheme, at Allergan, Inc. (NYSE:AGN). The activist investor wants Allergan to be taken over by Valeant Pharmaceuticals Intl Inc (NYSE:VRX).
The fund announced also that Anne Farlow will be Pershing Square Holdings’ chairperson. She has served on 17 different companies’ boards in the last 22 years, according to the fund’s statement.