Ackman Selling Stake in Pershing Square Ahead of Planned IPO (2)

Hedge-fund manager Bill Ackman is selling a stake in Pershing Square as a prelude to a planned initial public offering of his investment firm, according to a person familiar with the matter.

Ackman is selling a 10% stake in Pershing Square privately, in a funding round that will value the firm at more than $10 billion, said the person, who asked not to be identified discussing a confidential matter. The money will be used to seed additional funds, they said. The transaction may be announced as soon as next week, the person added.

Ackman, 58, is planning a stock market ...