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It's important to note that this is not an IPO of Bill Ackman's well-known Pershing Square hedge fund, which owns stakes in companies such as Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and Chipotle (NYSE: CMG). But the fee will be waived for the first 12 months after the IPO. Rather, Pershing Square USA will be a new closed-end fund.
Continuation funds will become more popular as a way for managers to exit investments without selling at depressed prices. Consolidation in the industry is likely, with larger managers acquiring smaller ones to expand their strategies and AUM.
You have to have a truly align feestructure and you have to kind of be willing to go down that road. So to clarify, some people’s called activity fees, the the profit participation is only on returns over and above what the SPF is generally. You can’t have 100 million dollar fund to meet a 2 percent managementfee.
.” It’s really helpful to have had five other meetings with people who sit at analogous funds that had losses that were just as big, and in fact, they may have contributed to those losses more and be able to tell him, first off, your fund, just by my math, has a $250 million managementfee. You mentioned superstars before.
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