Phil Falcone’s Harbinger Capital Partners is planning a $100 million initial public offering for one of its insurance units.
The Wall Street Journal reported that fixed annuities specialist Fidelity & Guaranty’s IPO is still in its preliminary stages. The money raised from the IPO will be used to fund its expansion and a dividend payment to its conglomerate Harbinger Group, which acquired the insurance unit in 2011.
Falcone and Harbinger Capital Partners, which are majority owners in Harbinger Group, recently reached a settlement with the Securities and Exchange Commission stemmed from charges of market manipulation and other violations.
Falcone and his New York-based firm Harbinger Capital Partners have agreed to pay more than $18 million and admit wrongdoing. The hedge fund manager has also been barred from the securities industry for at least five years.