Pershing Square Inc.

What they do

Pershing Square manages pools of permanent capital through a disciplined, research-intensive fundamental value investing approach. The company operates through one reportable segment, generating substantially all revenue from management fees and performance fees on its funds. About 98% of its $22.3 billion in Fee-Paying AUM is permanent capital that cannot be withdrawn or redeemed at the investor's option. It retains all management fees earned from its funds and HHH.

Revenue drivers

• Management fees — Retained in full by the company on its funds and HHH; management fees and performance fees together account for substantially all revenue.
• Performance fees — Includes Preferred Performance Fees on the first five percentage points of fund returns net of management fees above the applicable high-water mark, subject to offsettable fees.
• Subordinated Performance Fees — Realized performance fees above the Preferred Performance Fees are paid to CompCo to compensate investment professionals and certain other employees.

Recent performance

Quarterly revenue was $54.2 million for the quarter ended June 30, 2026, compared with $57.5 million for the quarter ended March 31, 2026, $53.2 million for the quarter ended June 30, 2025, and $52.3 million for the quarter ended March 31, 2025. As of June 30, 2026, total assets were $1.81 billion, total liabilities were $403.5 million, shareholder equity was $1.41 billion, cash and equivalents were $8.9 million, and long-term debt was $232.0 million. On July 21, 2026, the company paid a dividend of $0.122 per common share to shareholders of record as of July 13, 2026.

Strategy

Pershing Square states its organic growth relies primarily on compounding permanent capital at high rates of return over the long term. The company says it complements organic growth from time to time with transactions such as the Howard Hughes Transaction and by selectively launching other investment funds and completing corporate transactions that create permanent capital. It describes its business model as simple and highly scalable, with a single expense pool and a 'one-firm approach'. Because capital is not subject to investor withdrawal, the company says it does not need a large fundraising operation and can invest with a long-term ownership horizon.

Risks

• Permanent capital concentration — Because 98% of Fee-Paying AUM is permanent capital not subject to investor withdrawal, AUM depends on long-term investment returns rather than fundraising, so poor returns or losses could affect future fees and revenue.
• Performance fee dependence — Substantially all revenue comes from management fees and performance fees, and Preferred Performance Fees depend on returns exceeding the applicable high-water mark, so any shortfall only accrues to later crystallization periods.
• Single-segment operations — The company conducts its business through one operating and reportable segment with a single expense pool, which may offer little diversification if its core investment approach underperforms.
• Recent corporate conversion — The company completed its statutory conversion from a Delaware limited partnership to a Nevada corporation on April 28, 2026 in connection with the Combined Transaction, and it references risk factors in its IPO Prospectus filed April 30, 2026.

Outlook

The company reports that its growth is principally driven by long-term compounding of AUM and the opportunistic launch of new permanent capital vehicles to pursue new investment verticals or its core strategies in new jurisdictions. Management states it is well positioned to continue compounding permanent capital at high rates of return while exploring opportunities that leverage its core competencies. It cautions that forward-looking statements are inherently uncertain and that it undertakes no obligation to update them.