IPO debut of Bill Ackman’s investment fund falls short of targets

Billionaire investor Bill Ackman took his investment firm, Pershing Square Capital Management, public on Wednesday, raising $5 billion in a scaled-down but ambitious debut.

The offering created two listed entities on the New York Stock Exchange—a closed-end fund, Pershing Square USA Ltd. (ticker PSUS), and Pershing Square Inc. (ticker PS)— giving investors access to both the fund and its management business.

Shares saw a weak start, with PSUS dropping 18% below its IPO price of $50, and PS trading at $24.20 at the end of the day.

Ackman aims to build a long-term investment platform inspired by Berkshire Hathaway. His firm has delivered returns of over 2,600% since 2004, far outpacing the S&P 500.

The move also opens the door for smaller retail investors to participate in his strategy.