Hedge Funds

Ackman considers $3bn fund IPO in quest for permanent capital

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The activist chief of Pershing Square is mulling how to secure more stable financing.

 
  Bill Ackman at Ira Sohn 2010
(Photo: Bloomberg)

Bill Ackman is in discussions with investors about raising as much as $3 billion from an initial public offering of a new fund as a way to secure more permanent capital to finance Pershing Square Capital Management’s activist investing.

The public offering would be for shares in a new hedge fund that would mirror the firm’s flagship strategy. Ackman is not planning to take the entire firm public, according to people familiar with his thinking. In addition to conversations with investors during the past month, Ackman outlined his