Ackman’s Pershing Targets $5 Billion IPO for Closed-End Fund

Billionaire hedge fund manager Bill Ackman aims to raise $5 billion for his US-listed closed-end fund, including $2 billion from well-known institutional investors anchoring the deal, according to people with knowledge of the offering.

The initial public offering of the closed-end fund will coincide with the IPO of his hedge fund firm, Pershing Square Capital Management. As part of the deal, Pershing will give the fund investors some shares in Pershing Square Capital for free.

The firm’s partners will give away up to 10% of their shares as part of the dual listing, which could come as early as ...