Pershing Square Holdings manager slashes performance fee as Ackman eyes US launch
Bill Ackman (pictured) is the CEO of Pershing Square Capital Management.
The move is part of amendments to the investment management agreement (IMA) approved by the PSH board on Wednesday (8 February).
In a regulatory filing, PSH said the changes to the IMA relate to its variable performance fee provision, which reduced the fee that PSH had to pay if the manager was earning performance fees from other funds that were invested in public securities and not publicly traded in the US.
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However, this reduction only applied after the manager had accumulated $120m in such fees, covering the costs incurred by the manager during Pershing Square Holdings' London IPO. As of 31 December 2023, with $84m earned, the remaining reduction amounted to $36m.
The amendment waives the $36m outstanding balance of the uncovered IPO costs, enabling PSH's performance fees to be reduced.
There will be a reduction by 20% of performance fee income from defined non-PSH activities, as well as by 20% of management fees from such activities where they do not have performance fees.
The manager also revealed it intends to launch a new NYSE-listed US closed-end fund, Pershing Square USA (PSUS). On Wednesday, PSUS filed a registration statement for its initial public offering with the US Securities and Exchange Commission.
«With these new amendments to the IMA and the launch of the new closed-end fund and potential in the future for other new funds, PSH shareholders will benefit from reduced performance fees going forward,» said Bill Ackman, CEO of Pershing Square Capital Management.
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PSH chair Anne
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