Pershing Square plans pre-IPO venture fund

Pershing Square Inc., the investment firm run by Bill Ackman, is preparing to launch Pershing Square Ventures Ltd., an evergreen permanent capital vehicle that can hold stakes in private companies and keep them after they go public, Financial Advisor Magazine reported. In a shareholder letter, Ackman and CIO Ryan Israel said the fund will be seeded with private investments currently on Pershing Square's balance sheet and select private holdings from Ackman's family office. Ackman said on an earnings call the launch is targeted for the fall or end of year, with an SEC filing planned, and argued average investors get access to startups only at high valuations — citing SpaceX's $1.5 trillion valuation as an example.

The launch follows a wave of listed vehicles providing private-company exposure, including closed-end funds from Robinhood, Fundrise, and Powerlaw that went public this year. For allocators and family offices, Pershing Square Ventures offers a way to tap venture-stage names like SpaceX through a permanent capital vehicle, but the trading of Pershing Square USA — shares below both its $50 IPO price and NAV — highlights the discount risk that can affect such listed funds.