UPDATE 2-Bill Ackman's Pershing Square sells 10% stake to raise $1.05 bln

Reuters · 06/03 11:17
UPDATE 2-Bill Ackman's Pershing Square sells 10% stake to raise $1.05 bln

Adds details on investors in paragraph 3, Ackman comment in paragraph 4

- Billionaire Bill Ackman's Pershing Square Capital Management has raised $1.05 billion by selling 10% stake in the hedge fund to a consortium of institutional investors and family offices, it said on Monday.

The sale is a precursor to a potential initial public offering that could happen year or in 2026. Investors are valuing the firm at $10.5 billion, Reuters reported last week.

Investment firm ICONIQ, specialty insurer Arch Capital Group ACGL.O, investment bank BTG Pactual, Israeli insurer Menora Mivtachim, investment manager Consulta and an international group of family offices took part in the fundng.

"This investment will help accelerate our growth in assets under management in existing and strategies," CEO Ackman said.

About $500 million of the money raised will anchor Ackman's investment portfolio in the United States, which will be listed on the New York Stock Exchange.

BofA Securities, Citigroup, Evolve, Jefferies, and UBS Investment Bank were the placement agents for the funding round.


(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)

((ArasuKannagi.Basil@thomsonreuters.com;))