Sept. 16 (Bloomberg) -- Essent Group Ltd., the mortgage insurer backed by investors including Goldman Sachs Group Inc. and George Soros, filed to raise $287.5 million in an initial public offering as investors pour capital into companies that guaranty home loans.
Goldman Sachs, JPMorgan Chase & Co. and Barclays Plc are managing the offering, Bermuda-based Essent said today in a regulatory filing. The offering size is a placeholder amount used to calculate registration fees and may change.
Mortgages insurers MGIC Investment Corp. and Radian Group Inc., which are recovering from years of losses, have sold stock and notes to investors including hedge fund manager John Paulson who has been betting on the recovery of the U.S. housing market. The guarantors cover losses when homeowners default and foreclosures fail to recoup costs.
Proceeds from the offering may be used for “capital contributions to support the growth of our insurance subsidiaries,” Essent said in the filing.
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