FBR Raises $550 Million for New Mortgage Insurer, Owns Stake
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FBR & Co., the investment bank run by Chief Executive Officer Richard J. Hendrix, raised $550 million this week to fund NMI Holdings Inc., a planned U.S. mortgage insurer.
FBR underwrote a private offering of NMI shares and holds a stake of less than 5 percent, said Joseph Kavanagh, a senior managing director at the Arlington, Virginia-based firm. NMI was initially formed as a subsidiary of FBR, whose fee on the sale may almost match its total revenue in the first quarter.