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Our Business

Investment Banking

A leading U.S. equities underwriter,1 FBR offers a full range of investment banking and financing services:

  • Market leader in 144A institutional equity private placements2
  • Initial public offerings
  • Mergers, acquisitions and dispositions
  • Secondary and follow-on offerings
  • Innovative financing structures
  • Preferred equity
  • Restructurings and recapitalizations
  • Fairness opinions and other advisory assignments

Our investment banking, research, sales and trading focus is on several industry sectors including financial institutions, real estate, insurance, energy & natural resources, diversified industrials, consumer and technology, media & telecom.

Our Financial Sponsors specialists work closely with FBR's industry specialty groups to deliver a full array of investment banking products and solutions to the private equity community and their portfolio companies.

We have a particular commitment to supporting the growth of middle market companies, a vitally important sector of the U.S. economy. We provide a high level of service to small- and mid-cap companies.

FBR also has considerable experience in rethinking and restructuring businesses and even entire industry sectors, as well as in “inventing” new companies. For de novo organizations, we typically identify concepts early, finding new opportunities in sectors we know well. We help put in place appropriate management teams, establish financing structures and help arrange early-stage capital if needed. Sometimes debt or equity is provided through our merchant banking group. We have a long and successful record of proprietary investments in ventures we underwrite and/or help start – investments made side-by-side with our clients.

Equity Sales & Trading and Research

FBR is a leading player in institutional brokerage with an ongoing commitment to sell-side research covering U.S. equities. We focus on institutional sales and trading services to equity investors. Our team of brokers, traders, and sales traders covers institutional accounts in the United States, Canada, Europe, the Middle East, Australia and Asia, and we are a market-maker or trader in more than 1,570 equity and debt securities as of June 30, 2011.

FBR's Research group provides independent coverage of 420 companies as of June 30, 2011,3 and offers timely analysis of the ways in which economic, regulatory and legislative trends and events affect market sectors and individual companies.

Convertibles, Credit & Options

In addition to its core strength in equities, FBR has sales and trading capabilities in the full complement of products, including convertibles and other equity-linked securities, high yield bonds and bank debt in performing, stressed and distressed categories, and U.S. listed equity options. This expanded product suite generates incremental value for our customers by enabling us to provide corporate finance solutions and execution capabilities for our issuing clientele across the capital structure from equity to secured debt, while reinforcing our strategic strengths for our investing clientele through this comprehensive product offering, focused in the small to mid-cap space. Our sales-force has constant access to ideas and execution in all its product segments and their high levels of internal communication allow us to leverage each group’s strengths to our customers’ advantage.

Asset Management

FBR & Co., through its investment advisory subsidiary, manages a family of mutual funds that features eleven portfolios which seek to deliver attractive risk-adjusted returns over time. Another investment advisory subsidiary is responsible for managing a number of private funds.

We are investors in companies, not traders of stocks. Our balance-sheet approach to investing and attention to valuation allows us to offer diversified exposure to the best-run companies with an eye on capital preservation.

*Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. This and other important information can be found in the fund's prospectus. To obtain data current to the most recent month-end and a free prospectus, please call 888.200.4710 or visit www.fbrfunds.com. Investment return and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original costs. Please read the prospectus carefully before investing. The FBR Funds are distributed by FBR Investment Services, Inc., member FINRA/SIPC.

1) Source: Dealogic. As measured by the aggregate value of the U.S. common equity underwritings completed between 7/1/06 and 6/30/11 with apportioned credit including over-allotment to all book-running managers. Includes only rank eligible transactions.

2) Source: Dealogic. Relates to total deal value of all pre-IPO 144A equity offered for U.S. and Bermuda issuers; priced between 7/1/06 and 6/30/11, with apportioned credit to all book-runners. Excludes closed-end funds, bought deals and best efforts. League table credit is apportioned amount of total capital raised including over-allotment.

3) As of 6/30/2011. Research is provided by FBRC's Research department, which is independent from the Investment Banking department of FBRC and has the sole authority to determine which companies receive research coverage and the recommendation contained in the coverage. In the normal course of its business, FBRC seeks to perform investment banking and other fee generating services for companies that are the subject of FBRC research reports. Research analysts are eligible to receive bonus compensation that is based on FBRC's overall operating revenues, including revenues generated by FBRC's Investment Banking department. Specific information is contained in each research report concerning FBRC's relationship with the company that is the subject of the report.

5) Brokerage execution and investment banking services may be provided by FBR Capital Markets & Co.