Ackman investors to convert $2.2 bn into permanent capital
Ackman currently oversees roughly $11 billion in assets and is well-known for his activist strategies including his most recent efforts to get consumer products company Procter & Gamble to shape up. He has long been planning a London-listed vehicle with a market value of several billion dollars, giving him more freedom in making long-term investments.
"With more stable capital, we can increase the proportion of our capital in the core active investment strategy which has historically generated much higher returns than our passive holdings," Ackman wrote.
But to reach the goal, more work lies ahead, Ackman acknowledged. "In order to meet the minimum public offering condition which we established for PSH, we need to grow the private PSH fund through capital appreciation and/or new capital additions to a minimum of $3 billion," he said. The deadline for investors to say if they wanted to convert was Nov. 16. Ackman said he is considering offering a second chance to convert for existing Pershing Square offshore investors on July 1, 2013 "to accommodate those investors who
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