Bill Ackman’s Pershing Square is expected to raise around $5bn through a new closed-end fund IPO, marking one of the largest listings in the asset management sector in recent years, according to a report by Reuters citing unnamed sources familiar with the deal.

The fund, Pershing Square USA, is part of a broader public offering that also includes Pershing Square Inc, with trading expected to begin Wednesday. The IPO would rank as the biggest ever for a closed-end fund.

Shares in the new vehicle were priced at $50, with the offering reportedly oversubscribed and drawing strong institutional demand, which accounted for the majority of orders. Final allocations were due on Monday afternoon.

Around $2.8bn of the raise is expected to come from cornerstone investors, who have agreed to a six-month lock-up period. These investors are also set to receive additional share incentives as part of the structure, alongside a broader allocation mechanism offering existing Pershing Square shares as a sweetener to participants in the new fund.

Ackman had initially targeted a fundraising range of $5bn to $10bn but ultimately settled on the lower end of that range, according to sources. A representative for Pershing Square declined to comment.

The IPO comes more than two decades after Ackman founded Pershing Square Capital Management and built a reputation for activist investing campaigns targeting companies such as Canadian Pacific Railway and Chipotle Mexican Grill, as well as for his high-profile commentary on public markets and macroeconomic issues.

Investor interest has been driven by the firm’s long-term performance track record, including strong returns from its London-listed closed-end fund, which has delivered gains of more than 380% over the past decade.

The listing also follows a previously aborted attempt in 2024 to bring Pershing Square USA to market, which was withdrawn shortly before launch due to weaker-than-expected demand.