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Blackstone-backed mortgage business Ellington files for $100m IPO

2 Apr 2013

mortgage_lrgBlackstone-backed Ellington Residential Mortgage REIT has filed to raise up to $100m by listing on the New York Stock Exchange.

The business was created by Blackstone in August 2012 to buy and manage residential mortgage and real estate-related assets in an attempt to take advantage of improving conditions in the US housing market.

Blackstone currently owns 1.5 million shares representing 95.2 per cent of the company, having been the majority backer in a $31.5m investment when the company was formed.

Ellington, which targets bonds known as Residential Mortgage-Backed Securities (RMBS), said it believes the market holds attractive opportunities.

The filing said, “While the housing market continues to stabilize and improve in many regions, the mortgage market continues to evolve quickly, and we believe that there are likely to be significant opportunities to capitalize on changes in the mortgage market overall and on the dispersion in performance among different securities.”

Ellington’s filing followed the news fellow private equity-backed house builder Taylor Morrison could raise more than $600m through its impending IPO if shares sell at the $22 top-end of its price range.

Last week Blackstone credit arm GSO Capital Partners made up to $150m available to US housebuilder Beazer Homes as part of a land banking arrangement, amid the market recovery continuing to gain momentum.

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