After two years, 15 amendments, and more than $10 million in legal fees, Bill Ackman finally managed to get Pershing Square SPARC Holdings approved by the Securities and Exchange Commission.
“I’m the most patient man in America,” joked Ackman, in reference to the long wait for the SEC’s approval.
Ackman conceived the newfangled SPARC structure as an improvement on a SPAC after the SEC effectively denied the Universal Music Group deal struck with Ackman’s SPAC, Pershing Square Tontine Holdings, in 2021. The SPARC’s purpose, like that of a SPAC, is to invest in a private company and take it public, reports Institutional Investor.
Now the billionaire CEO of hedge fund Pershing Square Capital is on the prowl for a deal with a company seeking to raise $1.5 billion or more — and has already been fielding inquiries from interested parties. “The phone was ringing all weekend,” said an individual familiar with the situation. (On Friday, Ackman tweeted “If your large private growth company wants to go public without the risks and expenses of a typical IPO, with Pershing Square as your anchor shareholder, please call me. We promise a quick yes or no.”)
Twitter is unlikely to be the company the Pershing Square SPARC inks a deal with, according to a source close to Ackman.
“The easiest targets are companies held by private equity firms,” the individual familiar with Ackman’s thinking said. “All private equity investors would love to see some cash. A way to be a hero would be to sell one of the companies and have a big gain.” Read more.
