Ackman’s Pershing Square IPO Expected to Raise $5 Billion

Billionaire Bill Ackman’s IPO of his closed-end fund and his alternative asset management company is expected to raise about $5 billion, according to people familiar with the matter, the low end of the targeted fundraising range.

The initial public offering of shares in Pershing Square USA Ltd., which includes free shares of Pershing Square Inc., is about 85% covered by institutional investors, the people said, asking not to be identified as the information isn’t public. The $5 billion figure includes the $2.8 billion private placement disclosed in US Securities and Exchange Commission filings, the people said.