Monday, 30 March 2015
Last updated 40 min ago
Oct 7 2010 | 12:30pm ET
The price finally right for investors, Ellington Management has managed to secure enough buyers for the initial public offering of its three-year-old subprime mortgage fund.
Underwriters Deutsche Bank and Cantor Fitzgerald appear to have drummed up enough buyers to ensure that the Ellington Financial IPO is pre-sold. But the oft-delayed offering is much smaller than originally planned: When Ellington chief Michael Vranos announced its launch, he said he hoped to raise $750 million in permanent capital for it. An aborted IPO 10 months ago sought $208 million. Today, the fund hopes to raise $108 million.
Still, Ellington appears to have done well enough. Bloomberg News reports that the shares sold for between $22 and $24 for an average discount of about 9.1% to its claimed book value of $25.31 per share. That’s substantially more than anchor investors Legg Mason, which owns 21% of the fund, and FBR Capital Markets, which owns 12%, value their stakes at.
Most of the proceeds of the IPO are to be for investments.
Ellington Financial managed $246 million at the end of June. The fund returned 43% last year and is up 7.3% this year.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…