Ackman’s Pershing Square raises $1.05 billion in stake sale ahead of potential IPO

(Reuters) -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 next 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 (NASDAQ:), investment bank BTG Pactual, Israeli insurer Menora Mivtachim, investment manager Consulta and an international group of family offices took part in the fundng.

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

About $500 million of the money raised will anchor Ackman’s new 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.