Bill Ackman’s planned initial public offering for a US closed-end fund is expected to bring in $US2 billion – less than one-tenth the target the billionaire hedge fund manager suggested the sale could raise earlier this month.

Pershing Square USA’s IPO is expected to price on August 5 after the close, according to a term sheet seen by Bloomberg News. Pricing is contingent on the US Securities and Exchange Commission declaring effective an IPO registration statement. The fund would debut on the New York Stock Exchange the next day.

Bloomberg