Hedge Funds

Ackman plans Amsterdam fund IPO in Europe push


Billionaire activist investor Bill Ackman has announced plans to float a fund on the Amsterdam Stock Exchange, with the hope of raising at least $5 billion from non-U.S. institutional investors.

Ackman's firm Pershing Square has already secured $1.5 billion from 30 "cornerstone" investors and is seeking to raise an additional $2 billion for the new fund, to be named Pershing Square Holdings (PSH). The group expects trading of the shares to commence on October 13.

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"The IPO of Pershing Square Holdings is a transformational event for Pershing Square and all of our investors," CEO of PSCM, Bill Ackman said in a statement.

"We expect that the public listing of PSH will substantially enhance the stability of our capital base enabling us to invest a greater percentage of our assets in activist commitments on a long‐term basis, and improving our ability to take advantage of market dislocations when they arise," he said.

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Pershing Square will also invest $100 million itself in the fund, which will be separate from Ackman's $14 billion Pershing Square Capital Management.

The firm said it expected the new fund to have a market capitalization of at least $5 billion on completion of the initial public offering. UBS and the London branch of Deutsche Bank will act as joint global co-ordinators and joint underwriters.

Known for his $1 billion bet against health shake company Herbalife, Ackman has recently teamed up with Valeant Pharmaceuticals to pursue a hostile takeover bid for botox maker Allergan.

Activist hedge fund strategies, run by the likes of Ackman and rival Carl Icahn, have become increasingly popular. Investors have poured in over $18 billion since the start of 2013, bringing the asset base growth of these strategies to over $30 billion when performance is included, according to figures from hedge fund data provider Eurekahedge.

By CNBC's Jenny Cosgrave: Follow her on Twitter @jenny_cosgrave