Bill Ackman Net Worth

What is Bill Ackman's Net Worth?

Bill Ackman is an American hedge fund manager and philanthropist, boasting a net worth of $8 billion. Known formally as William Ackman, he accumulated his wealth by founding and leading Pershing Square Capital Management LP. Through Pershing, Bill has spearheaded several high-profile activist campaigns targeting companies like Wendy's and Herbalife. Previously, he co-founded Gotham Partners.

As of June 2023, Ackman sold 10% of Pershing Square to investors for $1.05 billion, valuing his stake in the company at $3.5 billion and his total net worth at $8 billion. This wealth level vaulted him into the ranks of the world's 500 richest people.

Early Life and Education

William Ackman was born on May 11, 1966, in Chappaqua, New York, to Lawrence, then-chairman of Ackman-Ziff Real Estate Group, and Ronnie. Of Jewish heritage, Ackman graduated magna cum laude from Harvard College in 1988 with a degree in social studies. He later earned his MBA from Harvard Business School in 1992.

Gotham Partners

In collaboration with fellow Harvard alumnus David P. Berkowitz, Ackman co-founded the investment firm Gotham Partners after graduation. The firm attracted investor interest, amassing $500 million in assets by the late 1990s. However, by 2002, Gotham faced litigation with various shareholders in its investments. During the 2007-08 financial crisis, Ackman profited significantly from buying and selling credit default swaps against MBIA corporate debt.

Pershing Square Capital Management

In 2004, Ackman established Pershing Square Capital Management using over $50 million of his personal funds. The hedge fund flourished, accruing lifetime gains of $11.6 billion by 2014. Pershing invested substantially in companies like Wendy's, Target, General Growth Properties, JCPenney, Procter & Gamble, and Chipotle. In a high-risk move, Pershing bought a 9% stake in Valeant Pharmaceuticals, which it later sold at a $4 billion loss due to controversies within the company.

One of Pershing's notable investments was in Universal Music Group in 2021, acquiring about 10% of its share capital. However, its $1.1 billion stake in Netflix was sold at a loss in 2022 after the stock plummeted by 35%, causing a $430 million loss.

Bill Ackman (Photo by Matthew Eisman/Getty Images)

Herbalife Gamble

In late 2012, Ackman released a report alleging that Herbalife was a pyramid scheme. Pershing sold $1 billion of the company's shares short, causing a stock price decline. Ackman spent $50 million on an activist campaign in 2014, aiming to further reduce Herbalife's stock price. Rival investor Carl Icahn opposed Ackman by investing $1 billion in Herbalife, betting the stock would rise, resulting in a short squeeze.

The FTC and FBI began investigating Herbalife because of Ackman's campaign. By 2016, Herbalife reached a settlement with the FTC. Ackman's battle with the company was documented in the 2016 film "Betting on Zero." Ackman eventually withdrew his $1 billion bet against Herbalife in early 2018, incurring a $500 million loss as Herbalife's stock continued to rise.

Pershing Square Tontine Holdings

In 2020, Ackman took Pershing Square Tontine Holdings public, valued at $4 billion—the largest SPAC IPO in history. The company features a Tontine structure that encourages shareholders to hold their shares through the merger process once a target is identified.

Philanthropy

Ackman is also deeply committed to philanthropy. He donated nearly $7 million to the Center for Jewish History, making it one of the largest individual gifts the institution has ever received. He established the Pershing Square Foundation in 2006 with a focus on innovation in education, healthcare, and urban development. This foundation has supported the Innocence Project, Centurion Ministries, and Planned Parenthood, among others.

Personal Life

Bill Ackman married landscape architect Karen Herskovitz in 1994, with whom he had three children. They divorced in 2018. In early 2019, he married designer and MIT professor Neri Oxman, and they have one child together.

Real Estate

In 2011, Ackman purchased a waterfront estate in Bridgehampton for $22 million. In 2015, he acquired another nearby property for $23.5 million. That same year, he bought a penthouse at NYC's One57 building for $91.5 million. In 2018, he bought a 13-room penthouse at 6-16 West 77th Street for $22.5 million. Ackman later submitted plans to build a two-level glass box on the roof, which was approved in May 2022 amidst mixed reactions from the public.