Pershing Square Capital Management, led by billionaire Bill Ackman, has raised $1.05 billion by selling a 10% interest to a group of family offices and institutional investors, the hedge fund announced on Monday. The transaction is a prelude to an anticipated IPO, which may take place in 2026 or the following year. According to the sources, the corporation is valued at $10.5 billion by investors.

The capital was provided by investment management Consulta, investment bank BTG Pactual, Israeli insurance Menora Mivtachim, investment firm ICONIQ and a global consortium of family offices.

“This new investment will help accelerate our growth in assets under management in existing and new strategies,” CEO Ackman said.

The majority of the funds raised, approximately $500 million, will serve as the foundation for Ackman’s new American investment portfolio, which will be listed on the New York Stock Exchange. Similar to Ackman’s Europe-listed hedge firm Pershing Square Holdings, the new fund will provide faster access to cash and reduced fees. The remaining funds will go toward Ackman’s intended launch of ventures.

In addition, Pershing Square restructured its ownership structure and appointed an independent board of directors. Ben Hakim, an insider, was named president of the hedge fund and also served on Pershing’s investment team. Former president Nick Botta will take over as vice chairman. The hedge fund owns shares in Universal Music Group, Chipotle Mexican Grill and Alphabet, the parent company of Google. The placement agents for the capital round were UBS Investment Bank, BofA Securities, Citigroup, Evolve and Jefferies.