Keep pulling the thread on Bill Ackman.
Pershing Square is conducting an IPO for a new fund called Pershing Square USA and a public listing for its management company, Pershing Square Inc.
The Pershing Square USA IPO is targeting a minimum size of $5 billion and a maximum size of $10 billion.
Pershing Square has raised $2.8 billion in committed capital for its IPO, exceeding its initial goal of $2 billion.
Over its 22-year history, Pershing Square has generated a 16.2% net annualized return, outperforming the S&P 500 by 5.5% per year.
Over the last eight years, since adopting a permanent capital model, Pershing Square has outperformed the S&P 500 by 8.3 percentage points annually, net of all fees.
The business plan for Howard Hughes is to convert it into a diversified insurance holding company modeled after a modern-day Berkshire Hathaway.
Howard Hughes has entered into a definitive agreement to acquire the insurance company Vantage.
Bill Ackman predicts that if Pershing Square compounds at historical rates, its AUM will exceed $1 trillion in just over 20 years without raising any new capital.
Pershing Square believes it will be the fastest-growing alternative asset manager due to the compounding of its retained gains and the materiality of new fund launches.
For its most recent fiscal year, Pershing Square generated $343 million in fee revenue and $298 million in fee-related earnings, achieving an 87% profit margin.
Two years ago, Pershing Square sold a 10% interest in the firm at a post-money valuation of $10.5 billion.
The Pershing Square USA offering is expected to increase Pershing Square's AUM by approximately 50% overnight.