FBR Capital Markets Corporation is a full-service investment banking, institutional brokerage and asset management company. In addition, it makes principal investments, including merchant banking investments. The Company’s subsidiaries are FBR Capital Markets & Co. (FBR & Co.), FBR Capital Markets International, Ltd. (FBRIL), Financial Services Authority (FSA), and FBR Fund Advisers, Inc. (FBR Fund Advisers). Its segments include capital markets, which include investment banking and institutional brokerage and research; asset management, and principal investing, which includes merchant banking. The Company’s capital markets business is conducted by its investment banking and institutional brokerage professionals through its United States and United Kingdom broker-dealer subsidiaries. The Company’s investment adviser subsidiaries principally manage a family of mutual funds. On August 31, 2009, the Company acquired Watch Hill Partners LLC.