Ackman’s Fund IPO Raises $5 Billion for Permanent Capital Plan

Bill Ackman’s combined initial public offering for his closed-end fund and alternative asset manager raised $5 billion, adding to the billionaire’s war chest for Warren Buffett-style long-term investments.

The amount raised in the IPO includes a previously-disclosed $2.8 billion private placement, according to a statement confirming an earlier Bloomberg News report.

The IPO, which was set to raise as much as $10 billion, will result in two listed entities, closed-end fund Pershing Square USA Ltd., and asset manager Pershing Square Inc., filings with the US Securities and Exchange Commission show.

The private placement funds are ...