The first IPOs of 2015: Three financial firms rejoin the IPO calendar

The 2015 IPO market kicks off with three financial firms, including two REITs and an insurance broker. All three had previously attempted to go public. Mortgage REIT Sutherland Asset Management is set to raise $125 million and Patriot National could raise $141 million. Both deals, which are on the IPO calendar to price next week, have significantly changed their business models since last time. Nordic office REIT Polar Star Realty Trust postponed its $500 million offering in December, but could be back in January.

Patriot National (PN) previously filed to raise $170 million at a $258 million market cap in February 2010 but postponed and later withdrew. In 2010, the company operated a hybrid model, providing insurance services as well as writing insurance policies for workers' compensation. The IPO candidate has since shed its insurance underwriting business, and now focuses only on higher-margin brokerage and administration services.
Underwriters: UBS, BMO, Suntrust Robinson Humphrey

Sutherland Asset Management (SLD) previously filed to raise $250 million in July 2009 but postponed its offering. In 2009, Sutherland invested in highly rated non-Agency securities. Now the company, which is managed by Waterfall Asset Management, focuses on small balance commercial loans used by small businesses, including acquired sub-performing and non-performing loans.
Underwriters: J.P. Morgan, Morgan Stanley, FBR, Citi, Keefe Bruyette Woods

Polar Star Realty Trust (PSRT), a REIT formed to own office and industrial property in Sweden and Norway, originally planned to raise $500 million in December, but postponed its IPO. We now expect it to attempt an IPO later this month. The two most recent REIT IPOs, Paramount Group (PGRE) and STORE Capital (STOR), trade up 10% and 16%, respectively, from their offer prices.
Underwriters: FBR, Wunderlich, ABG Sundal Collier

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