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Bill Ackman’s Pershing Square USA withdrew plans for a an initial public offering after investor demand appeared to wane from original expectations.
But the hedge fund titan said he would be back with a revised plan for the offering for his fund, which he had wanted to model after Berkshire Hathaway.
Wrote Ackman in a statement:
“While we have received enormous investor interest in PSUS, one principal question has remained: Would investors be better served waiting to invest in the aftermarket than in the IPO? This question has inspired us to reevaluate PSUS’s structure to make the IPO investment decision a straightforward one. We will report back once we are ready to launch a revised transaction.”
The withdrawal comes a day after the fund said it would be seeking to raise $2 billion, far below the possible $25 billion cited in previous reports.
As of the end of June, Pershing Square had $18.7 billion in assets under management. Most of the money was under Pershing Square Holdings, a closed-end fund that trades in Europe.
