Bill Ackman is pitching investors on a sweeping plan to take Pershing Square public alongside a new closed-end fund in a deal that could raise as much as $10 billion and dramatically expand the firm’s reach, Bloomberg reports.

The structure of the offering would give investors stakes in both the fund and the management company. For every 100 shares of the closed-end fund Pershing Square USA Ltd. that investors purchase, they would automatically receive 20 shares of Pershing Square Inc., the management company.

The billionaire hedge fund manager says the goal is to turn Pershing Square Inc. into one of the most valuable companies in the world by delivering strong long-term performance built on permanent capital.

“Our long-term goal for Pershing Square Inc. is to build one of the most valuable companies in the world by generating one of the best long-term performance records of any investor ever,” Ackman — whose net worth exceeds $8 billion — wrote in a letter to investors this week.

The structure is designed to solve a longstanding problem in asset management: investor withdrawals. Under Ackman’s model, Pershing investors would get liquidity by selling their shares, not by asking the fund manager for their money back.

Unlike traditional hedge funds or private-market vehicles, investors in the closed-end fund won’t be able to redeem their capital directly from the fund. Instead, liquidity comes through the stock market, where shareholders can sell their stakes like any other listed company.

That means Pershing’s capital remains locked in, avoiding the redemption pressure that often forces funds to sell investments or hold large cash buffers to meet withdrawal requests.

The veteran activist investor argues that permanent capital will allow Pershing to hold winning investments for decades and fully capture the power of compounding.

“We think of our business model as akin to owning a royalty on the compounding of assets invested in high-return investment strategies,” Ackman said. “If you understand the long-term math of compounding, you can appreciate the extraordinary potential of PSI’s business model.”

The offering comes as private-market funds face increasing redemption pressure. Large firms such as Blackstone Inc. and BlackRock Inc. have recently had to balance waves of withdrawal requests with maintaining the health of underlying portfolios.

Part of the capital for the deal will come from a $2.8 billion private placement from investors including family offices, pension funds and insurance companies, according to regulatory filings. Investors include the Teacher Retirement System of Texas, Arch Capital Group Ltd., BTG Pactual and Marlton LLC, according to people familiar with the matter.

The asset manager itself won’t receive proceeds from the IPO, and Pershing Square expects the fund and management company to trade independently once the offering is priced. Representatives for the investors and a spokesperson for Pershing Square declined to comment.

The new listing also marks a comeback attempt for Ackman after a high-profile failure to launch a similar fund in the U.S. A New York Stock Exchange-listed vehicle planned two years ago was cut from $25 billion to $4 billion, then $2 billion, before being scrapped entirely, following a period of several bad investment calls.

Those losses included costly bets on Herbalife Ltd. and Valeant Pharmaceuticals, which together wiped out billions between 2015 and 2017.

Since then, Pershing says it has entered its “permanent capital era,” reorganizing the firm and expanding its asset base. A key step came in May, when Pershing and its funds boosted their stake in property company Howard Hughes Holdings Inc. to 47%.

The move is part of a broader plan to turn Howard Hughes into a conglomerate with controlling stakes in multiple businesses, potentially including an insurer that could provide Pershing with additional capital.

Ackman has openly modeled the strategy after Warren Buffett’s Berkshire Hathaway, the $1 trillion conglomerate built through decades of disciplined investing and permanent capital.

Ackman and Pershing Square Chief Investment Officer Ryan Israel have even floated the idea of hosting an annual shareholder meeting modeled after Berkshire’s famed gathering in Omaha.

Whether Ackman can replicate Buffett’s success remains an open question.

“He needs them to be patient and willing to commit,” said Lawrence Cunningham, professor emeritus of law at George Washington University, who hosted a symposium on Buffett’s shareholder letters in 1996 where a young Ackman met Buffett. “That’s not easy to do. There’s enormous short-term pressure.”