Billionaire investor Bill Ackman‘s investment firm, Pershing Square, announced on Monday that it had raised $1.05 billion by selling a 10% stake in the hedge fund to a consortium of strategic investors. These strategic investors include Arch Capital Group (NASDAQ:ACGL), BTG Pactual (BPAC11), Consulta Limited, ICONIQ Investment Management, Menora Mivtachim Holdings, and others.
PSCM’s Company Structure
After this stake sale, the investment firm has established an independent Board of Directors consisting of five independent directors and four affiliates of Pershing Square Capital Management (PSCM).
Additionally, PSCM will reorganize its ownership structure and transfer the voting securities of Pershing Square to a limited liability company. This LLC will be an entity controlled by the senior management of Pershing Square, including Bill Ackman, who is the largest shareholder of the LLC.
This stake sale could be a precursor to a potential initial public offering that is likely to occur next year or in 2026.
Is IPO ETF a Good Investment?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Renaissance IPO ETF (NYSEARCA:IPO) shares, based on 45 Buys and nine Holds assigned in the past three months, as indicated by the graphic below. After a more than 20% rally in its share price over the past year, the average IPO price target of $45.74 per share implies a 15.5% upside potential.
