Wednesday, 23 July 2014
Last updated 14 hours ago
Aug 30 2013 | 10:57am ET
Less than two weeks after accepting a five-year ban from the hedge fund industry, Harbinger Capital Management's Philip Falcone is demonstrating how he plans on spending his absence.
Falcone's Harbinger Group, a publicly-listed permanent capital vehicle he set up in 2010, announced that one of its portfolio companies would sell new shares to fund a dividend payment and expansion. In a preliminary prospectus filing, Baltimore-based insurer Fidelity & Guaranty Life said it would hold an initial public offering to raise about $100 million.
Harbinger Group is not selling any of its majority stake in the company, which it acquired in 2011. But Fidelity & Guarantee will be sending some of the proceeds to the company, anyway, in the form of a dividend. The rest will be used to "support the growth of our business and other general corporate purposes."
Falcone and Harbinger Capital earlier this month settled a variety of fraud allegations with the Securities and Exchange Commission. The two agreed to pay $18 million, and Falcone accepted the five-year ban—a ban that does not bar him from serving as a director of a public company and thus allows him to remain chairman and CEO of Harbinger Group.
Fidelity & Guaranty's IPO is several months away. Credit Suisse Group will serve as the underwriter.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…