Pershing Square founder Bill Ackman urges NYC mayor to soften tax rhetoric on billionaires

Pershing Square founder Bill Ackman has publicly advised New York City Mayor Zohran Mamdani to moderate his anti-billionaire stance, warning that aggressive tax rhetoric could drive wealthy investors and hedge funds out of the city. Ackman argued that the city's financial model relies heavily on the top 10 per cent of residents contributing the majority of tax revenue, a dynamic essential for maintaining New York's status as a global finance capital.

This intervention follows a viral video released by Mayor Mamdani on tax day, which singled out hedge fund billionaire Ken Griffin as the poster boy for a proposed pied-à-terre tax on luxury properties worth over $5 million. Filming directly outside Griffin's $238 million Central Park penthouse, the mayor argued that the city's wealthiest part-time residents are not carrying their fair share of the tax burden and should pay an annual fee to help fund expanded childcare and close the budget deficit.

Ackman highlighted Griffin's role as a major job creator and philanthropist, noting that Griffin had threatened to withdraw a $6 billion development project in midtown Manhattan following the mayor's comments. Ackman stated that Griffin is a significant contributor to hospitals, museums, and cultural institutions, describing him as the kind of person who brings value to New York and who should not be scared away.

Drawing a parallel to California, Ackman suggested that misguided tax policies there have caused billionaires to relocate to Austin, Texas, and Miami. He emphasised that the economics of New York City are such that the top 1 per cent of the population pays approximately 35 to 40 per cent of the total tax revenue, while the top 10 per cent contributes around 75 per cent.

Meanwhile, Ackman's own asset manager, Pershing Square, announced a dual initial public offering raising approximately $5 billion. The move transitions the firm from a private structure to a publicly traded company on Nasdaq, with institutional investors covering 85 per cent of the deal. The offering includes a private placement that has locked in $2.8 billion from family offices and pension funds.

The dual IPO involves Pershing Square and its closed-end fund, Pershing Square USA, which will trade separately under their own tickers. The combined offering gives one free share of Pershing Square for every five shares of Pershing Square USA purchased, with the Pershing Square USA fund priced at $50 per share and debuting on the New York Stock Exchange.

Ackman reiterated that he does not want to move out of New York City himself, but he fears the mayor's current stance might encourage others to leave. He maintained that because of billionaires, New York City can offer the poorest citizens a much better way of life and a much better city, urging the administration to avoid policies that could undermine this economic foundation.