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FBR is the dominant firm in the Rule 144A equity market, having raised $16 billion in 49 transactions in the last ten years. In the last ten years, FBR has completed nearly 10 times as many 144A transactions and raised nearly 10 times as much capital via these transactions as any other investment bank.1 We believe this dominance is due largely to our distribution capability – among the broadest and deepest in the capital markets – our speed of execution, and a team of experienced, client-focused investment bankers.

Rule 144A transactions were developed initially as a method to quickly raise equity capital. However, over time, the product evolved and is now used to:

  • Raise primary capital – working capital and debt repayment
  • Divest non-core assets
  • Serve as an exit vehicle for portfolio companies of private equity firms
  • Function as an alternative to the lengthy merger and acquisition process

The mechanics of the Rule 144A transaction are very similar to an IPO but have four distinct features. The transactions:

  • Result in a faster time to capital
  • Allow companies to remain private longer to focus on execution and SOX compliance
  • Provide access to a sophisticated investor base of qualified institutional buyers and accredited investors
  • Permit a simple capital structure void of preferences, dividends and irregular terms and conditions

1) Source: Dealogic. Relates to total deal value of all pre-IPO 144A equity offered for U.S. and Bermuda issuers priced between 7/1/01 and 6/30/11 with apportioned credit to all book-runners. Credit is apportioned amount of total capital raised including over-allotment. Includes only rank eligible transactions.