Pershing Square (PS) Registration Filing summary

Company overview and business model

• Operates as an alternative asset manager focused on permanent capital vehicles and long-term, high-return investment strategies.

• Growth is driven by compounding assets under management (AUM) and launching new permanent capital vehicles, with a focus on organic growth rather than frequent fundraising.

• Manages flagship funds including Pershing Square Holdings (PSH), private funds, and, post-IPO, Pershing Square USA (PSUS), as well as a significant stake in Howard Hughes Holdings (HHH).

• Employs a concentrated, research-intensive value investing approach, complemented by opportunistic asymmetric hedging.

• Maintains a lean, scalable, high-margin business model with a largely fixed cost base and minimal capital intensity.

Financial performance and metrics

• As of December 31, 2025: $30.7 billion in total AUM, $20.7 billion in fee-paying AUM, with 96% classified as permanent capital.

• For the year ended December 31, 2025: total revenue of $762.5 million and GAAP net income attributable to the partnership of $249.8 million.

• Fee-Related Earnings (FRE) for 2025: $297.9 million, with a margin of 87%.

• Distributable Earnings (DE) for 2025: $312.5 million.

• Performance fees increased 113% year-over-year in 2025, driven by strong fund returns.

• PSH net return since inception (2004–2025): 2,644% vs. S&P 500 at 836%.

• Annualized net return for PSH (2018–2025): 22.6%, outperforming the S&P 500 by 830 bps per annum.

Use of proceeds and capital allocation

• The IPO does not generate proceeds for the company; all net proceeds from the PSUS IPO and private placement go to PSUS.

• Shares of common stock are issued to PSUS IPO and private placement investors for no additional consideration.

• The company invests alongside investors in new vehicles, including a $150 million anchor investment in PSUS, financed with a term loan facility.

• Capital allocation is focused on compounding permanent capital, launching new funds, and executing strategic transactions such as the HHH Transaction.