Billionaire investor William Ackman, who had raised $4bn in the biggest-ever special purpose acquisition company, told investors he would be returning the sum after failing to find a suitable target company to take public through a merger.

The development is a major setback for the prominent hedge fund manager who had initially planned for the SPAC to take a stake in Universal Music Group last year when these investment vehicles were all the rage on Wall Street.

In July 2020, Pershing Square Tontine raised $4 billion in its initial public offering and wooed prominent investors ranging from hedge fund Baupost Group, Canadian pension fund Ontario Teachers and mutual fund company T. Rowe Price Group.

Read more: CNBC