Ackman’s Pershing Square USA Pulls IPO After Slashing Target (2)

Billionaire Bill Ackman’s Pershing Square has withdrawn an initial public offering for a US closed-end fund, after sharply downsizing a $25 billion fundraising target and facing difficult questions from investors.

Pershing Square USA Ltd. will reevaluate its structure based on investor feedback, Ackman wrote in a statement Wednesday. “We will report back once we are ready to launch a revised transaction,” Ackman wrote.

The withdrawal comes after Pershing Square slashed the anticipated size twice in just over a week. The hedge fund manager had floated a potential size of $25 billion during the marketing of the offering earlier this ...