Episode summary
BONUS: Pershing Square Founder & CEO Bill Ackman Talks Public IPO | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Dani Burger, Paul Sweeney · Guests: Bill Ackman
Summary
Bill Ackman said Pershing Square’s $5 billion IPO marks the start of a new phase, not the end of a process. He argued the firm can deploy the capital quickly into the most liquid, highest-quality companies, and said many of the names it already owns, including Uber and Meta, still look cheap to him. He described the vehicle as a liquid, low-cost way to invest in Pershing Square’s compounding record, and said the structure is designed to be more flexible and tax-efficient than a traditional C-corp or closed-end fund.
Ackman also framed the listing as part of a broader growth model for Pershing Square as an asset manager. He said the firm expects fee-paying assets to rise to $25 billion to $26 billion after the IPO, with growth driven more by compounding than by constantly raising new funds. He contrasted that with firms that shrink when they stop raising capital, and said the strategy remains concentrated in large-cap, mega-cap public stocks.
On markets, Ackman sounded bullish. He said recent dislocations made high-quality businesses “stupidly cheap,” though valuations have already moved off the lows. He expects strong returns to continue, sees long-term opportunity in Howard Hughes Holdings and Vantage, and argued that public shareholders should be able to benefit from clearer communication, quarterly calls, and what he sees as a more durable capital base.
Key takeaways
- Ackman said Pershing Square can put the new $5 billion to work in weeks, not months, mainly in highly liquid public stocks.
- He argued the IPO vehicle is a tax-efficient, low-cost structure that should let investors access Pershing Square at or below book value.
- Ackman said Pershing Square’s fee-paying assets should rise to $25 billion to $26 billion after the deal closes.
- He said the firm’s edge comes from compounding capital over time, not from constantly raising new funds.
- Ackman remained bullish on the market, saying many high-quality companies still screen as cheap even after the recent rebound.
Notable quotes
“Actually, we think it's a very good time to put the capital to work, and we invest in the most liquid companies in the world”
“You take our record over the last 8 years since we've had permanent capital, it's been a 24.9% return”
“we're going to focus on investing. We're going to focus on getting our Universal Music deal done”
“I would say we're above stupidly cheap bottom uh but I still think there are a lot of very high-quality”
How the episode opens
Bloomberg Audio Studios podcasts, radio, news. Now, the big deal of today, and it's a day that's been years in the making for Bill Ackman and his hedge fund Pershing Square. Pershing has raised a $5 for a US dual IPO in pursuit of a Warren Buffett investing powerhouse. And for our radio and TV listeners, I want to welcome Pershing Square CEO and founder Bill Ackman. Bill, thank you so much for stopping by today.
Of course, thank you. So, as I mentioned, this this has been years in the making, at at least 2 years. It's had fits and starts, much like this American IPO market itself.
What was it like to get this over the line? It's great. It's a great day, uh, but it's really, you know, it's the beginning, right?
The beginning of a journey. So, it's the beginning of a journey, and now armed with $5 billion. How quickly can you put that to work?
Actually, we think it's a very good time to put the capital to work, and we invest in the most liquid companies in the world. So, it's really it's weeks, not months. So, it's weeks, but there's this question.
So, some of the companies that you own in your other portfolio, for example, example, Uber, Meta, they've had a good run, and you're already very long them. So, the question might arise, is now the right time to be doubling down?
Actually, I think the companies you mentioned are a very cheap stocks today. And interestingly, some of the best businesses in the world are trading at the lowest multiples they've traded at, in some cases, in history. Actually, those multiples bottomed maybe 2 weeks ago, so we're a little bit off the uh, the all-time bottom, but, you know, very bullish on the economy, and, you know, there are some amazing businesses available at really cheap prices.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- pershing square ipo
- public markets outlook
- investment strategy
- growth strategy
- market action analysis
Companies and tickers mentioned
- Pershing Square
- Bloomberg
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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