June 3 Reuters Billionaire Bill Ackman39;s Pershing Square Capital Management has raised 1.05 billion by selling 10 stake in the hedge fund to a consortium of institutional investors and family offices, it said on Monday.

The sale is a precursor to a potential initial public offering that could happen next year or in 2026. Investors are valuing the firm at 10.5 billion, Reuters reported last week.

Investment firm ICONIQ, specialty insurer Arch Capital Group, investment bank BTG Pactual, Israeli insurer Menora Mivtachim, investment manager Consulta and an international group of family offices took part in the funding.

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

About 500 million of the money raised will anchor Ackman39;s new investment portfolio in the United States, which will be listed on the New York Stock Exchange.

The new fund will mimic Ackman39;s Europelisted hedge fund Pershing Square Holdings, but offer lower fees and quicker access to capital.

The rest of the money will be used for funds that Ackman plans to launch.

Pershing Square has also set up an independent board of directors and reorganized its ownership structure.

It appointed insider Ben Hakim as the president of the hedge fund, in addition to him being a member of Pershing39;s investment team. Nick Botta, who was previously president, will become vice chairman.

The hedge fund has stake in companies such as…