Ackman Eyes $4 Billion for Closed-End Fund, Short of Goal (3)

Billionaire hedge-fund manager Bill Ackman’s initial public offering for a closed-end fund is poised to raise far less than the $25 billion he floatedtwo weeks ago.

The head of Pershing Square Capital Management expects the fund will file with US regulators to raise $2.5 billion to $4 billion, according to a filing Thursday. The ultimate deal size will depend on demand over the coming three business days, with the fund slated to price on Monday evening, though the firm has placed a cap of $10 billion on the sale.

Bill Ackman

Photographer: Patrick T. Fallon/Bloomberg

While Pershing Square USA Ltd.’s IPO is ...