Bill Ackman is selling his stake in Pershing Square for a $10.5 billion valuation, with the goal of eventually going public.

• According to a source, Bill Ackman's firm is currently raising $1.05 billion in a funding round, which represents 10% of his management company, Pershing Square.
• An initial public offering in the U.S. is being considered by the hedge-fund manager, but no bankers have been hired and the process has not begun officially, according to a source.

Bill Ackman, a billionaire investor, is selling a 10% stake in Pershing Square with the goal of eventually taking his investment firm public.

According to a source, Ackman's firm is currently raising $1.05 billion in a funding round that implies a valuation of $10.5 billion. The investors involved in the deal are institutional and family offices who prefer to maintain their anonymity.

The Wall Street Journal initially disclosed the developments. Pershing Square chose not to respond.

The hedge-fund manager is considering an initial public offering in the U.S. after the funding round, but has not yet hired bankers or started the process officially, according to a source.

Two years ago, Ackman appointed Ryan Israel as the chief investment officer, marking the first time the billionaire hedge-fund manager delegated day-to-day investing responsibilities to someone else. Ackman remains CEO, with ultimate decision-making power, although he has stated that Israel would succeed him as head of the firm if he was hit by a "pie truck."

As of April's end, Pershing Square had $18.6 billion in total assets under management, with most of its capital invested in Pershing Square Holdings, a closed-end fund trading on European stock exchanges.

After achieving market-topping returns and engaging in vocal activist campaigns, Ackman has become one of the world's most prominent hedge-fund investors. He has also gained a wide following on social media platform X, with 1.2 million followers, commenting on a range of issues including antisemitism and the presidential election.

Ackman has announced plans to launch a publicly traded closed-end fund that will invest in 12 to 24 large-cap, investment-grade, "durable growth" companies in North America.

The hedge fund of a well-known investor had only six stocks at the end of March, including Alphabet, Chipotle Mexican Grill, and . It achieved a 26.7% gain in the previous year.

In 2022, Ackman ceased his activist short selling, which resulted in a highly publicized conflict with Herbalife.