Pershing Square Holdings says PSUS IPO closing will reduce performance fees

Pershing Square Holdings said the closing of Pershing Square USA's $5 billion initial public offering will reduce the performance fees it pays under its fee-offset arrangement.

In an April 30 press release, PSH said the offering for Pershing Square USA, Ltd. closed with an aggregate size of $5 billion. The deal closed alongside the concurrent IPO of Pershing Square Inc., the parent company of the investment manager.

PSH said its shareholders will benefit because its performance fees are reduced by 20% of management fees earned from certain funds that do not charge performance fees or allocations, including PSUS.

Reuters reported on April 28 that Pershing Square had raised $5 billion for the new U.S. fund, and Bloomberg reported the next day that PSUS had debuted after the combined offering raised the same amount. The latest company filing adds the formal closing and explains the fee impact for PSH investors.

The company did not quantify how much the offset will cut future performance fees in dollar terms. But the closing gives Pershing Square a completed capital-raising event and provides a direct financial benefit to PSH shareholders under the existing structure.